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Feasibility and profitability study Construction of a biogas plant to produce fuel for Tartu city buses

ERKAS Valduse O June 2011

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Contents "ntroduction############################################################################################################################################$ Analysis %et&odolo y############################################################################################################################' 1# A(A)*S"S OF E+"S!"(, S"!-A!"O(#####################################################################################################. /ublic transport##################################################################################################################################. /roduction of bio as to be used as transport fuel##############################################################################. Source %aterial################################################################################################################################10 1#0 )ocation of bio as plant##############################################################################################################1$ 1#0#2 )ocation 21 Aardlapalu landfill#############################################################################################12 1#0#3 Co%parison of locations######################################################################################################22 2# !EC4("CA)5 S!R-C!-RA)5 E(V"RO(6E(!A) A(7 SAFE!* RE8-"RE6E(!S OF /)A(! CO(S!R-C!"O(####################################################################################################################################2' 3#1 !ec&nolo ical alternati9es##########################################################################################################2. 3#1#1 :et fer%entation %et&od##################################################################################################22 3#1#2 7ry fer%entation %et&od####################################################################################################31 3.1.2.1 Cyclical fermentation method...............................................................................31 3.1.2.2 Uninterrupted fermentation..................................................................................33 3#2 C&oice of tec&nolo y##################################################################################################################3$ 3#3 /roduction process#####################################################################################################################3; 3#3#1 /re<process##########################################################################################################################3. 3#3#2 6ain process########################################################################################################################01 3#3#3 Final process########################################################################################################################02 3#3#0 ,as purification####################################################################################################################03 3#0 E=uip%ent##################################################################################################################################00 0#1 !ar et roups##############################################################################################################################0; 0#1#1 AS Eesti ,aas########################################################################################################################0; 0#2 Final consu%ers##########################################################################################################################0. 0#2#1 >us co%panies#####################################################################################################################0. 0#2#2 :aste %ana e%ent co%panies##########################################################################################02 2

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

0#2#3 Co%panies offerin ta?i ser9ices#########################################################################################02 0#2#0 Ot&er transport co%panies#################################################################################################$0 0#2#$ /ri9ate 9e&icles####################################################################################################################$0 $#1#1 O Saare Econo%ics in J@@ri################################################################################################$3 $#1#2 Ara9ete bio as plant############################################################################################################$3 $#1#3 O Vinni >io aas#################################################################################################################$3 $#1#0 O Oisu >io aas###################################################################################################################$3 $#2 >io as production facilities operatin on Aaste slud e B seAa e sedi%ent#############################$0 $#2#1 /alCassaare seAa e purification plant of !allinna Vesi#########################################################$0 $#2#2 Kuressaare Vee9DrE seAa e purification station#################################################################$0 $#2#3 Saluta use *east Factory seAa e purification plant############################################################$$ $#2#0 (ar9a Vesi AS seAa e purification plant##############################################################################$$ $#2#$ AS RaE9ere Vesi seAa e purification plant##########################################################################$$ $#3 >io as production facilities based on landfill ases####################################################################$' $#3#1 !allinn landfill in JFelD&t%e#################################################################################################$' $#0 >io as production proCects in !artu County###############################################################################$' $#0#1 SeAa e purification plant of AS !artu Vee9DrE####################################################################$' $#0#2 "l%atsalu bio as plant##########################################################################################################$; $#0#3 Aardlapalu landfill################################################################################################################$; '#1 Operatin cost Gin 2013H#############################################################################################################'1 '#2 Operatin inco%e#######################################################################################################################'2 '#3 "n9est%ent cost##########################################################################################################################'3 '#0 /roCect profitability#####################################################################################################################'0 ;#1 Econo%ic risEs############################################################################################################################'; ;#2 Or anisational risEs####################################################################################################################'2 ;#3 )e al risEs###################################################################################################################################;0 .# E(V"RO(6E(!A) "6/AC!###############################################################################################################;2 .#1 En9iron%ental i%pact caused by construction###########################################################################;2 .#1#1 "%pact on li9in nature########################################################################################################;3 .#1#2 "%pact on t&e Aater en9iron%ent#######################################################################################;0 .#1#3 "%pact on t&e 9isual en9iron%ent and cultural &erita e#####################################################;$ 3

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

.#1#0 (oise and 9ibration##############################################################################################################;$ .#1#$ Socio<econo%ic i%pact########################################################################################################;$ .#1#' "%pact on &u%an &ealt&5 Aell<bein and co%fort##############################################################;' .#2 En9iron%ental i%pact caused by t&e co%%issionin of t&e plant#############################################;' .#2#1 "%pact on li9in nature########################################################################################################;; .#2#2 "%pact on t&e soil and landscape########################################################################################;; .#2#3 "%pact on t&e air en9iron%ent############################################################################################;. .#2#0 "%pact on t&e Aater en9iron%ent#######################################################################################;2 .#2#$ "%pact on t&e 9isual en9iron%ent and cultural &erita e#####################################################.0 .#2#' (oise####################################################################################################################################.0 .#2#; Socio<econo%ic i%pact########################################################################################################.0 .#2#. "%pact on &u%an &ealt&5 Aell<bein and co%fort##############################################################.1 .#3 6iti atin ne ati9e en9iron%ental i%pact factors#####################################################################.2 .#0 Co%parison of alternati9es and i%ple%entation assess%ent G eneral reco%%endationsH######.$ Su%%ary##############################################################################################################################################.' -sed literature and sources##################################################################################################################.; Anne? 1 "nitial tasE Anne? 2 C&ecE<list of preli%inary assess%ent of en9iron%ental i%pact Anne? 3 Financial analysis and financial perspecti9es for construction of bio as plant Anne? 0 >io as plant calculations I Aet processin Anne? $ >io as plant calculations I dry processin Anne? ' /roCect su%%ary

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

"ntroduction !&e City of !artu is participatin in a proCect entitled J>altic >io as >usK financed fro% t&e European !erritorial Collaboration >altic Sea Re ion pro ra%%e# !&e ai% of t&is proCect is to encoura e t&e use of bio as in city buses in cities and areas in t&e >altic Sea re ion# !&e obCecti9e of !artu is to start usin city buses fuelled Ait& bio as and to establis& t&e re=uired infrastructure# !&e City 6ana e%ent 7epart%ent of !artu City ,o9ern%ent5 actin as t&e sub<unit responsible for t&e proCect5 &as been busy preparin for t&e proCect since (o9e%ber 2002# /resently5 9arious studies &a9e been and are bein carried out re ardin analysis of t&e feasibility and profitability of t&e proCect5 its tec&nical solutions5 possibilities of co%bined use of natural as and bio as5 %aintenance of buses5 fuellin 5 or anisation of AorE and supportin t&e e?pansion of bio as production# !&is feasibility and profitability study for t&e construction of a bio as plant is also one of t&e acti9ities %eant to assist in preparin and supportin t&e proCect# !&e ai% of t&e study is to e9aluate t&e profitability of t&e bio as plant planned for construction# !&e AorE is di9ided into t&ree %ain parts# !&e first part focuses on t&e feasibility study# 4ere t&e e%p&asis is on t&e eneral de9elop%ent and operatin principles of t&e plant and a description of t&e e?istin situation# !&e second part of t&e analysis deals %ainly Ait& t&e profitability study of t&e proCect and ansAers t&e =uestion as to A&et&er construction of t&e plant in !artu or nearby is econo%ically profitable and to A&at e?tent# "n addition5 t&e financial analysis and profitability calculations s&oA t&e lon <ter% i%pact of t&e proCect and its prospects# !&e t&ird part of t&e analysis describes possible risEs and %aCor en9iron%ental i%pact related to t&e proCect# An o9er9ieA of t&e %aCor risE factors5 pre9ention and %iti ation possibilities t&ereof and possible risE factors for t&e en9iron%ent are i9en in te?t for%#

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Analysis %et&odolo y !&e obCecti9e of t&e feasibility and profitability study is to obtain infor%ation about t&e construction conditions Gincludin t&e locationH of t&e bio as plant5 to deter%ine t&e buildin cost5 to in9esti ate t&e profitability conditions and pay<bacE period5 to deter%ine t&e %ost suitable source %aterials Ait& A&ic& to operate t&e plant and t&e cost and supply conditions of t&ese5 to identify alternati9e tec&nolo ical solutions for t&e buildin of t&e plant and t&e cost t&ereof and to e9aluate t&e en9iron%ental i%pact related to t&e construction of t&e plant# !&e study &as been prepared considerin t&e folloAin re=uire%ents and conditions1 t&e plant and e=uip%ent s&all be suitable for t&e production of bio%et&ane G%eetin t&e re=uire%ents of t&e SAedis& standard for car fuelH in a %ini%u% 9olu%e of 150005000 %LMper yearN bio as s&all be produced fro% t&e %ost suitable source %aterial5 under t&e %ost suitable conditions and accordin to e?pected final production considerin t&e i9en areaN t&e %ost suitable location Gnot furt&er t&an 20 E% fro% !artuH s&all be foundN t&e cost of tec&nolo ical solutions Gincludin e=uip%entH5 buildin s and construction is based on infor%ation sources a9ailable to t&e publicN and t&e study is based on results and conclusions re ardin t&e c&oice of source %aterial stated in OA study of t&e source %aterial for bio asO carried out by t&e Estonian "nstitute for Sustainable 7e9elop%ent5 !allinn#

6et&odolo ies used1 data processin N and conclusions of ready studies# !&e analysis is based on t&e folloAin sources and studies I Statistical Office5 statistic data of t&e City of !artu5 de9elop%ent plans5 plans etc# !&e feasibility and profitability study for t&e construction of t&e plant includes a description of t&e e?istin situation re ardin t&e bio as %arEet and de%and5 analyses and co%pares possible locations for t&e plant and e9aluates tAo alternati9e types of tec&nolo y and financial indicators of rele9ant scenarios#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

/rofitability e9aluations of different buses are based on t&e incre%ental cas& floA resultin fro% co%parin t&e tAo scenarios# !&e scenarios are t&e folloAin 1 Scenario 1 I Aet processin 5 in A&ic& case t&e in9est%ent Aould be P250;.5;00# As a source %aterial5 %anure fro% cattle far%s Gdiluted %anure5 20Q AetH Aould be used# !&e ener y 9alue of t&is Aould be 1 tonne of %anure R 20 %L of as# Scenario 2 I dry processin 5 in A&ic& case t&e in9est%ent Aould be P35$0050'0# As a source %aterial5 rassy bio%ass Aould be used# !&e ener y 9alue of t&is Aould be 1 tonne of rassy bio%ass R 112 %L of as# !&e financial calculations are %ade usin t&e table calculation pro ra%%e 6icrosoft E?cel 200;5 A&ere cas& floA is calculated by %eans of si%ple %at&e%atic operations# !&e financial indicators &a9e been calculated by %eans of t&e folloAin functions1 discounted (et /resent Value G(/VH &as been calculated usin t&e (/V function Gdiscount rate5 cas& floA of periodsH# !&e assess%ent of an in9est%ent proCect is considered to be positi9e if t&e result is (/VS0N and t&e "nternal Rate of Return G"RRH of t&e proCect is calculated usin t&e "RR function Gcas& floA of periodsH# !&e assess%ent of an in9est%ent proCect is considered to be positi9e if t&e result is "RRSE1# !&e pay<bacE period is based on esti%ated incre%ental cas& floAs of in9est%ent costs and operatin costsMinco%e by e9aluatin A&et&er t&e le9el of future incre%ental net cas& floA is as e?pected# !&e pay<bacE period is calculated based on t&e incre%ental cu%ulati9e cas& floA %et&od# !&e discount rate is used to esti%ate in &oA %any years after t&e proCect t&e net present 9alue of incre%ental cu%ulati9e cas& floA Aill be positi9e for t&e first ti%e and re%ain positi9e t&rou &out t&e calculation period# A pay<bacE period is considered to be a period in years startin fro% t&e in9est%ent year until t&e year profitability is ac&ie9ed#

!&e initial tasE of t&e study is described in Anne? 1#

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

1. ANALYSIS OF EXISTING SITUATION

/ublic transport

!&ere are 2$ re ular bus lines in !artu Ait& a total len t& of 021 E%# !&e re ular bus lines are co9ered daily by $1 buses# !&e total annual operational scope of re ular carria e is 3#' %illion line E%# Se9eral studies5 includin JFeasibility study of bio as city busesK5 &a9e s&oAn t&at based on econo%ic5 social and en9iron%ental factors it is reasonable to use bio%et&ane as fuel for public transport in !artu# !&e first en9iron%entally friendly co%pressed as buses &a9e been operatin on !artu lines since 6arc& 2011# "n future5 !artu City ,o9ern%ent is plannin to increase t&e percenta e of as buses on city lines# At first t&e buses Aill operate on natural as5 but it is planned to c&an e t&is as soon as t&e production of bio as and its processin for 9e&icle fuel be ins in t&e city# Assu%in t&at t&e annual %ilea e of one bus is .05000 Eilo%etres and a9era e fuel consu%ption is 0$ litresM100 E%5 t&is %aEes 3'5000 litres per year Gone litre of fuel is e=ual in ener y ter%s to app# 1 %L of %et&aneH5 t&e re=uired fuel =uantity to be supplied to !artuKs buses is $1 ? 3'5000 %L R 15.3'5000 %L#

/roduction of bio as to be used as transport fuel

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

As in t&e opinion of !artu City ,o9ern%ent it Aould be reasonable to use reneAable ener y sources to fuel city buses and one of t&e possibilities is to use bio as for en ine fuel5 bio as s&ould be produced in t&e re ion# At present5 neA city buses are e=uipped Ait& as en ines and operate on natural as5 A&ic& %eans t&at t&e supply of natural as depends on t&e contracts betAeen t&e Russian state<controlled as %onopoly ,aTpro% and Eesti ,aas AS# "n t&e future it is planned to fuel t&e 9e&icles usin local bio as5 A&ic& Aill reduce dependence on t&e international econo%y5 relations betAeen t&ird parties etc# As t&e construction of as pipes is relati9ely e?pensi9e and transport of as Ait& 9e&icles is not 9ery efficient5 !artu5 as t&e bio as supplier for city buses5 can also consider bio as producers operatin nearby# At t&e %o%ent t&ere are no bio as stations in sout&ern Estonia5 alt&ou & t&ere are se9eral on oin proCects re ardin t&e construction of suc& plants5 plus one de9elop%ent proCect for t&e alternati9e use of landfill ases1 "l%atsalu bio as plantN >io as production at t&e AS !artu Vee9DrE seAa e purification plantN and Aardlapalu landfill#

All of t&ese are located in !artu County# !&e =uantity of bio as and bio%et&ane producedM enerated in all t&ree locations Aould be sufficient to supply t&e cityKs buses5 but as t&ere are econo%ically %ore profitable alternati9es to t&e use of bio%et&ane5 based on current infor%ation t&ese are not so%et&in to be considered# !&e production of t&e %entioned plants and collection syste%s is planned to be used for t&e eneration of electric and &eat ener y for nei &bour&ood settle%ents or5 in t&e case of AS !artu Vee9DrE5 for its oAn consu%ption# !&us t&ere is no e?cess 9olu%e as suc& A&ic& could be processed and sold for 9e&icle fuel5 and based on t&is one %ore bio as production plant s&ould be constructed in t&e !artu area# !&e annual 9olu%e of bio as produced in t&is plant and bio%et&ane enerated fro% it s&ould co9er t&e fuel needs of city buses and t&is s&ould also be sufficient to co9er t&e fuel needs of pri9ate 9e&icles and t&e fleets of 9arious co%panies GAaste

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

transport5 real estate and street %aintenance and postal ser9icesH related to transport in t&e City of !artu# !&e bio as plant and e=uip%ent %ust be suitable for t&e production of bio%et&ane G%eetin t&e re=uire%ents of t&e SAedis& standard for car fuelH at a %ini%u% 9olu%e of 150005000 %LMper year# !artu City ,o9ern%ent &as ordered a profitability analysis for t&e construction of a bio as plant A&ic& is one of t&e preparatory sta es of furt&er de9elop%ent of t&e plant5 findin a de9eloper and %aEin in9est%ents#

Source %aterial

>io as can be produced fro% se9eral bio%ass resources a9ailable in Estonia e# # biode radable do%estic Aaste5 biode radable Aaste enerated in t&e food industry5 a ricultural Aaste5 seAa e sedi%ent and slud e and rassy bio%ass1# "n addition5 bio as can be produced fro% as enerated in t&e fer%entation process of biode radable co%ponents taEin place in e?istin landfill# 6ost co%%only5 bio as is produced fro% a ricultural Aaste I ani%al %anure and slurry# !&e plants currently operatin and planned to be opened also %ainly operate on a ricultural Aaste# An ad9anta e of t&ese is a stable fer%entation process taEin place in %et&ane tanEs# >ut slurry and %anure are source %aterials A&ose dry %atter and ener y content is relati9ely loA5 A&ic& %eans t&at processin of a JAeaEK source %aterial re=uires a relati9ely lar e tanE fleet and t&e in9est%ent re=uire%ent per ener y unit produced is &i &er t&an in t&e case of a plant A&ic& operates Ait& a %ore ener y<efficient source %aterial# !&is in turn raises t&e issue of t&e plant concept I A&et&er besides slurry and %anure t&ere are ot&er suitable source %aterials in t&e 9icinity5 &oA far it re%ains profitable to transport t&e% fro% and A&at t&e opti%u% price or production costs are#

Villu Vares5 7epart%ent of !&er%al En ineerin 5 !allinn -ni9ersity of !ec&nolo yN U>io%ass tec&nolo y sur9ey5 i%ple%entation of bio%ass tec&nolo ies in EstoniaUN 2.#02#200;1 &ttp1MMAAA#bioener ybaltic#eeMbAVclientVfilesMbioener ybalticMpublicMi% MFileM!ellitud Q20uurin udM>io%assiVte&noloo iauurin udVCaVte&noloo iateVraEenda%ineVEestisV2#pdf

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

!&us in t&e c&oice of source %aterial it is i%portant to consider t&e ener y 9alue of t&e %aterial5 t&e tec&nolo y to be i%ple%ented and t&e a9ailability of t&e source %aterial5 its price5 lo istics conditions and transport costs# "n 2010 a source %aterial study Aas carried out Ait& t&e specific ai% of studyin t&e operatin conditions of t&e bio as plant to be erected in !artu and its source %aterial 2# !&e obCecti9e of t&e study Aas to analyse t&e co%position of %i?ed do%estic Aaste enerated in t&e City of !artu and !artu County5 to %ap t&e source %aterialMAaste floAs enerated in !artu suitable for bio as production and t&e =uantities t&ereof5 to %aEe a pro nosis of source %aterialMAaste type eneration until 20205 to deter%ine t&e a9ailability of t&e source %aterial and t&e supply conditions and cost t&ereof and to e9aluate t&e =uantity of en ine< rade fuel able to be produced fro% t&e a9ailable source %aterials# !&e study focused on fi9e source %aterial floAs suitable for bio as production1 %i?ed do%estic Aaste Gincludin bioAaste in do%estic AasteHN biode radable production Aaste and residue enerated in co%paniesN biode radable a ricultural Aaste in ani%al and poultry &usbandry G%anureHN seAa e sedi%ent and slud eN and rassy bio%ass Gincludin ener y plants specially roAn for siloH# !&e study results s&oA t&at t&e total 9olu%e of t&e source %aterialMAaste enerated in !artu County suitable for use for bio as production is appro?i%ately $005000 tonnes per year Gsee !able 1H# !&e %aCority of t&e potential source %aterialMAaste floA is for%ed of rassy bio%ass5 %anure and seAa e sedi%ent# !able 1# Su%%ary of esti%ated =uantities of studied source %aterialMAaste floAs Source %aterialMAaste floA 6i?ed do%estic Aaste >iode radable Aaste enerated in co%panies Esti%ated :aste typeGsH Food Aaste Ani%al tissue Aaste /lant tissue Aaste :&ey Gdry %atter content app# 'QH CooEin oil and fat =uantity in 2010 tonnesMyear ;$00 ;00 200 3'5000 ;00 Forecast =uantity in 2020 tonnesMyear 105000 2$0 10'0 0$5000 2$0

Estonian "nstitute for Sustainable 7e9elop%ent 2010 UA study of t&e source %aterial for bio asW5 !allinn

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

7raff >iode radable a ricultural Aaste fro% ani%al and poultry &usbandry SeAa e purification Aaste 7ry %anure Gdry %atter content ) 1;QH SeAa e sedi%ent and slud e Gdry %atter

.000

2200

1;25000X

1.$5000

205000

225000

content 1$<1;QH Ot&er bio%ass ,rassy bio%ass 2335000 2335000 !O!A) 0;.5.00 $0$5.10 Source1 study of source %aterial for bio as in City of !artu and !artu County5 Estonian "nstitute for Sustainable 7e9elop%ent As also seen fro% t&e table5 %i?ed do%estic Aaste and biode radable Aaste enerated in co%panies for% only a s%all part of total bioAaste %ass# !&e %aCority co%prises biode radable a ricultural Aaste and rassy bio%ass# !&e latter &as a reater ener y 9alue and t&us reater potential for use in bio as production# >ut in t&e conte?t of bio as production one cannot consider Aaste floA 9olu%e and ener y 9alue only# !&e Aaste type t&at Aould be %ost suitable for use for bio as production in !artu and A&ic& could be used to produce as depends on %any additional factors suc& as a9ailability of t&e source %aterial5 its price5 transport5 lo istics and c&oice of tec&nolo y Gsee !able 2H# !able 2# >io as production in 2010 and 2020 by potential source %aterial and supply conditions Source %aterialMsubstr ate ,enerated =uantity in 2010 GtMyH A9ailable =uantity in 2010 GtMyH 2$00 a9ailability ;$00 esti%ated for 2013 Ani%al ;00 ;00 12'5000 2$0 2$0 1;15000 12 2005000 105000 $000 0005000 >io as =uantity per year G%LH 2010 ,enerated =uantity in 2020 GtMyH A9ailable =uantity in 2010 GtMyH >io as =uantity per year G%LH 2020 Supply cost in 2010

Food Aaste

Supply cost 0 E-R

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

tissue Aaste

Supply cost 0 E-R Y transport cost

/lant tissue Aaste 200 $00 $05000 1000 200 205000

Supply cost 0 E-R Y transport cost

:&ey Y transport cost 3'5000 1.5000 $205000 0$5000 2000 22;5000

Esti%ated supply cost Gpurc&ase priceH

CooEin oil and fat ;00 000 1.05000 2$0 $00 22$5000

Supply cost 0 E-R Y partial transport cost Supply cost

7raff

.000

0000

0'05000

2200

not less t&an .52. E-RMt Y transport cost

3;5000 )i=uid %anure 2;15000 not %ore t&an ; E% fro% !artu ;;;5000 ;.5$00 ;.5$00 15'0.5$00 Supply cost 0 E-R5 in future %ay be sold for %oney 13

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Y transport cost SeAa e sedi%ent and slud e ,rassy bio%ass Gfro% se%i< natural biotic co%%unitiesH Total 382,300 120,600 7, !", 00 323,100 272,3 0 23, 0 , 00 Source1 study of source %aterial for bio as in City of !artu and !artu County5 Estonian "nstitute for Sustainable 7e9elop%ent 3;5$00 V6 3;5$00 V6 050'25$00 1$$5$00 1$$5$00 1252005000 !ransport cost 205000 205000 ;005000 225000 225000 ;;05000

!ransport cost

>ased on t&e data presented in !able 2 it %ay be concluded t&at considerin t&e ratio of t&e a9ailable source %aterialKs =uantity and price5 t&e %ost feasible substrate for bio as production is seAa e sedi%ent and %anure# Also5 t&e =uantity of rassy bio%ass as a possible substrate for bio as production is &i & Gincludin t&e =uantity of a9ailable bio asH# >ut unfortunately none of t&ese source %aterial floAs is a9ailable Ait&out co%plications# SeAa e sedi%ent Aill %ost probably be used in t&e bio as plant to be constructed by AS !artu Vee9DrE# A9ailability of rassy bio%ass is also not clear and is related to se9eral factors A&ic& cannot alAays be directly influenced by bio as producers# ,roAin of ener y plants on fields and producin bio as fro% bio%ass %ade fro% t&ese &as reat potential5 but at present Aould be unliEely to be possible due to t&e cost of t&is acti9ity5 %eanin t&at t&e inco%e recei9ed fro% t&e sales of bio as Aould not co9er t&e cost of producin silo considerin current financial support and t&e %arEet prices of reneAable ener y# !&us5 re ardin t&e a9ailability of rassy bio%ass in t&e near future5 it Aould be %ore realistic to consider %ostly rassy bio%ass collected as a result of %oAin parEs and se%i< natural land# Sila e %oAn fro% unused land could be supplied Ait& t&e self<cost of %oAin #

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

!&ere %i &t also be proble%s Ait& t&e a9ailability of %anure since %ost far%ers are located furt&er fro% t&e city and transport of li=uid %anure to t&e city and of fer%entation Aaste bacE Aould &a9e se9eral ne ati9e i%pacts Gunpleasant s%ell and air pollution caused by transportH# Also5 obtainin %anure free of c&ar e lon <ter% %ay be =uestionable5 since t&ere are co%petin bio as production proCects planned in t&e area A&ic& are also based on %anure# !&is study is based on tAo scenarios A&ic& in turn are based on tAo different source %aterials for t&e bio as plant# "n one case a ricultural ani%al Aaste G%anure and slurryH is used and in t&e ot&er rassy bio%ass#

1#0 )ocation of bio as plant

!&e bio as plant is planned to be constructed in sout&ern Estonia1 in t&e City of !artu or surroundin s GAit&in a radius of 20 E%H5 because if it Aere constructed furt&er aAay a as pipeline Aould &a9e to be erected5 but t&is is econo%ically unfeasible5 as is transportation of as by 9e&icle Gsee Fi ure 1H# !&e preli%inary c&oice of location for t&e plant is pri%arily based on t&e fact t&at t&e plant s&ould produce en ine fuel for city buses# !&e c&oice of location is first and fore%ost related to aspects of en9iron%ental protection5 safety and tec&nical possibilities# !&is study discusses tAo possible locations for t&e plant1 one is AS !artu Vee9DrE and t&e ot&er is in t&e 9icinity of Aardlapalu landfill# !&e locations Aere c&osen considerin t&e fact t&at t&e plant s&ould be situated close to anot&er bio as production facility or collection syste%# !&is is so as to ensure stable as production e9en in t&e e9ent t&at t&ere are proble%s in t&e plantKs operations#

1$

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Fi ure 1# Surroundin s of !artu Ait&in a 20 E% radius

1'

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

1#0#1 )ocation 11 Rin tee 0$ Address1 Rin tee 0$5 !artu Gsee Fi ure 2H Cadastral re ister nu%ber1 ;2$1110111000' S#o$t %es&$'(t'on o) lo&at'on !&e land is located Ait&in t&e City of !artu in t&e RopEa industrial area# !&e area under discussion is partially co9ered Ait& &i & 9e etation# !&e area of t&e land is 13 0200 %2# Lo&at'on 'n &'t* )ocation 1 is situated in t&e RopEa industrial area5 in t&e nort&ern part of t&e city# !&e land is located app# 3#$ E% fro% t&e city centre# !&e location is aAay fro% %ain streets# !&ere are %ostly s%all production5 A&olesale and industrial properties in t&e area# )ocation 1 is suitable for t&e construction of t&e bio as plant since it is located in an industrial area and Aill not &a9e an i%pact on t&e arc&itectural appearance of t&e city# (or is it close to built<up areas of cultural and en9iron%ental 9alue# !&e location enCoys ease of access and t&e netAorE of surroundin streets Aould ensure easy access to t&e pre%ises of t&e plant# Lo&at'on 'n $elat'on to s+$$o+n%'n, &o-(an'es !&ere is a co%pany called ,arrison !rZEiEoda O at t&e address GRin tee 0$H of )ocation 1# !&ere are co%panies dealin Ait& car repair and spare parts sales and sales of construction %aterials and %ac&ines in t&e area# Lo&at'on 'n $elat'on to $es'%ent'al a$eas an% %.ell'n,s )ocation 1 is situated aAay fro% residential areas and dAellin s# !&e closest dAellin is at a distance of app# $'0 % as t&e croA flies5 but t&ere is no public road betAeen t&e location and t&e dAellin # !&us traffic5 traffic noise and operatin noise of %ac&ines Aill not disturb dAellin s and t&e location is suitable for t&e purpose#

1;

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Lo&at'on 'n $elat'on to ,as stat'on )ocation 1 is at a distance of '5;$ E% fro% t&e co%pressed as station located on !D&e Street# Lo&at'on 'n $elat'on to so+$&e -ate$'al !&e closest source %aterial sources G%anure and slurryH to )ocation 1 are at a distance of $#$ E% G20 far%sH# !&ese are %ostly cattle far%s Ait& o9er 100 ani%als# !&e source %aterial can also be transported fro% areas furt&er afield# !&e closest bi far% Ga pi far% Ait& o9er 300 ani%alsH is located at a distance of app# ' E%# !&e location of rassy bio%ass G rass fro% botto%<land %eadoAs of t&e E%aCF i Ri9erH is al%ost t&e sa%e distance fro% bot& locations G20 E%H# E/'st'n, se$0'&e l'nes an% o(t'ons to &onst$+&t se$0'&e l'nes !&e land is bordered by Aater and seAera e pipes# !&e as supply can be sol9ed usin t&e as line located on Rin tee Street# 1e$&enta,e o) a%%'t'onal &osts o) 'n0est-ent Considerin t&e fact t&at t&ere is no detailed plan for )ocation 1 and connection to as pipes5 additional costs &a9e to be considered for t&e construction of t&e plant# !&e a9era e construction cost per %etre of as pipeline is 12. E-R# Accession fees to t&e as netAorE %ust be added# Accession fees to t&e poAer netAorE depend on t&e siTe of t&e %ain fuse# Accession fees for Eesti Ener ia are calculated on t&e basis of an a%pere fee only# 2eta'le% (lans '-(ose% on lo&at'on !&ere are no detailed plans for )ocation 1# S(e&')'& (+$(ose o) lo&at'on !&e specific purpose of t&e location is 100Q production land5 A&ic& %aEes it possible to erect a as plant t&ere#

1.

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Fi ure 1# )ocation 1

1#0#2 )ocation 21 Aardlapalu landfill

Address1 Aardlapalu landfill5 -&ti5 lenur%e %unicipality5 !artu County Gsee Fi ure 3H Cadastral re ister nu%ber1 20201 1 0021 03.0 S#o$t %es&$'(t'on o) lo&at'on !&e land is located in t&e 9illa e of -&ti in lenur%e %unicipality in !artu County# "t is an area of for%er landfill A&ose acti9ities &a9e ceased and A&ic& &as since been i%pro9ed# !&e area of t&e land is 2.#2 &a# Lo&at'on 'n $elat'on to &'t* )ocation 2 is situated app# 1$ E% fro% t&e city# !&ere are se9eral connection roads betAeen t&e location and t&e city1 t&e !allinn<!artu<VFru<)u&a%aa road Gof national i%portanceH and t&e 4aasla9a<Vana<Kuuste road Gof local i%portanceH# )ocation 2 is suitable for t&e construction of t&e plant since it is located aAay fro% t&e city and Aould not &a9e an i%pact on t&e arc&itectural 12

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

appearance of t&e city# (or is it close to built<up areas of cultural and en9iron%ental 9alue# At t&e sa%e ti%e5 t&e location enCoys ease of access5 and t&e netAorE of surroundin streets Aould ensure easy access to t&e pre%ises of t&e plant# Lo&at'on $elate% to s+$$o+n%'n, &o-(an'es /resently t&ere are on oin construction acti9ities related to t&e closure of t&e landfill and i%pro9in t&e surroundin s at t&e address of )ocation 2# !&e s&are&oldin co%panies 6erEo E&itus and 6erEo "nfra are carryin out study and desi n AorE pursuant to a procure%ent1 t&ey Aill close t&e landfill5 erect a seAa e purifier and perfor% %aintenance durin t&e Aarranty period of t&e facilities# Lo&at'on 'n $elat'on to $es'%ent'al a$eas an% %.ell'n,s )ocation 2 is situated aAay fro% residential areas and dAellin s# !&e closest dAellin is at a distance of app# '20 % as t&e croA flies# !&us traffic5 traffic noise and operatin noise of %ac&ines need to be considered so as not to disturb people li9in nearby# Lo&at'on 'n $elat'on to ,as stat'on )ocation 2 is at a distance of ;#2 E% fro% t&e co%pressed as station located on !D&e Street# Lo&at'on 'n $elat'on to so+$&e -ate$'al !&e closest source %aterial sources G%anure and slurryH to )ocation 2 are at a distance of $#$<.#2$ E% G13 far%sH# !&ese are cattle far%s Ait& o9er 100 ani%als# !&e source %aterial can also be transported fro% areas furt&er afield# !&e closest bi far% GAit& o9er 300 ani%alsH is located at a distance of app# 1; E%# !&e location of rassy bio%ass G rass fro% t&e botto%<land %eadoAs of t&e E%aCF i Ri9erH is al%ost t&e sa%e distance fro% bot& locations G2$ E%H# E/'st'n, se$0'&e l'nes an% o(t'ons to e$e&t se$0'&e l'nes !&e land is bordered by Aater and seAera e pipes# !&ere is a poAer netAorE on t&e property# A as line Aould &a9e to be constructed betAeen t&e as station and t&e plant GAit& t&e possibility to connect to t&e lenur%e lineH#

20

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

1e$&enta,e o) a%%'t'onal &osts o) 'n0est-ent Considerin t&e fact t&at t&ere is no detailed plannin for )ocation 2 or connection to as pipes5 additional costs &a9e to be considered for t&e construction of t&e bio as plant# !&e a9era e construction cost per %etre of as pipeline is 12. E-R# Accession costs to t&e as netAorE %ust be added# Accession fees to t&e poAer netAorE depend on t&e siTe of t&e %ain fuse# Accession fees for Eesti Ener ia are calculated on t&e basis of an a%pere fee only#

2eta'le% (lans '-(ose% on lo&at'on !&ere are no detailed plans for )ocation 2#

S(e&')'& (+$(ose o) lo&at'on !&e specific purpose of t&e location is 100Q Aaste stora e land5 A&ic& %aEes it possible to erect a as plant t&ere#

Fi ure 3# )ocation 2

21

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

1#0#3 Co%parison of locations !&e opti%u% location for t&e plant Aas selected based on a co%parison of t&e folloAin criteria1 location in t&e cityN location in relation to t&e surroundin co%paniesN location in relation to residential areas and dAellin sN noiseN e?istin ser9ice lines and options to erect ser9ice linesN detailed plans i%posed on t&e locationN percenta e of additional costs of in9est%entN specific purpose of t&e locationN construction and safety re=uire%ents for t&e construction of t&e plantN location in relation to as linesN location in relation to t&e co%pressed as stationN and pro?i%ity and transport distance of t&e source %aterial#

Re ardin location alternati9es5 it s&ould also be considered t&at t&ere is a protected area and &abitat of protected species in t&e 9icinity of one location G)ocation 1H# !&ere is a (atura 2000 bird conser9ation area and &abitat of certain species of orc&ids and ranunculi in t&e 9icinity of AS !artu Vee9DrE# !&us it &as to be ensured durin construction t&at nestin birds are disturbed as little as possible and t&at t&e &abitats of t&e protected plant species are not destroyed#

22

)ocation 1 RopEa industrial area5 aAay fro% eneral centres )ocation in city )ocation in relation to t&e surroundin co%panies )ocation in relation to residential areas and dAellin s (oise Ser9ice lines "ndustrial and production co%panies
Feasibility and profitability study

)ocation

!able 3# Co%parison of locations

AAay fro% dAellin s Gt&e closest is at a distance of $'0 %H

:it&in per%itted li%its

Construction of a bio as plant to produce fuel for !artu city buses

< aasitrassi Z&endus 9Fi%aliE la&endada lD&edal asu9ast torustiEust<eleEtri9FrEE?istin Aater and seAa e pipes

(one 7etailed plannin < Accession to as netAorE< ,as connection< 7etailed plannin Additional costs

100Q production land

"ntended use < For% of oAners&ip

23

)ocation 2 lenur%e %unicipality5 1$ E% fro% !artu 7orano9a >altic O5 as collection


Feasibility and profitability study

AAay fro% dAellin s Gt&e closest is at a distance of '20 %H

:it&in per%itted li%its E?istin Aater and seAa e pipes

Construction of a bio as plant to produce fuel for !artu city buses

solution5 < an unfa9ourable solution and YM< a %ediocre solution# (one 100Q Aaste deposit land <

!&e co%parison results are presented in t&e folloAin table5 A&ere Y represents a fa9ourable

Accession to ener y netAorEAccession to as netAorE<,as pipe connection 3#$ E% Gfro% lenur%e settle%entH

20

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

!able 0# E9aluation of locations Ser9ice lines )ocation in city (oise dAellin s)ocation in relation to residential areas and )ocation in relation to surroundin co%panies )ocation in relation to source %aterial 7etailed plan "ntended use )ocation )ocation in relation to t&e as station Additional costs Su% of criteria

<

)ocation 1 Y Y Y Y Y < Y < YM< Y . 0 )ocation 2 < Y Y < < < < Y YM< Y ' ' >ased on t&e co%parison and e9aluation tables it beco%es clear t&at t&e opti%u% location for t&e construction of t&e bio as plant is )ocation 1# Reco%%endations for furt&er acti9ities1 to launc& concrete ne otiations Ait& t&e oAner of t&e land at Rin tee 0$ for construction of t&e bio as plantN and to launc& ne otiations Ait& a possible construction co%pany#

2$

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

2. TEC3NICAL, ST4UCTU4AL, EN5I4ON6ENTAL AN2 SAFETY 4E7UI4E6ENTS OF 1LANT CONST4UCTION

T#e &onst$+&t'on an% o(e$at'onal sa)et* o) a 8'o,as (lant a$e ,o0e$ne% 8* se0e$al nat'onal an% E+$o(ean Un'on $e,+lat'ons, o) .#'&# t#e )ollo.'n, a$e t#e -ost '-(o$tant9 1H 7irecti9e of t&e European /arlia%ent and Council of 23 6arc& 1220 on t&e appro?i%ation of t&e laAs of t&e 6e%ber States concernin e=uip%ent and protecti9e syste%s intended for use in potentially e?plosi9e at%osp&eres G20M2ME-HN and 2H 7irecti9e of t&e European /arlia%ent and Council of 1; 6ay 200' on %ac&inery5 and a%endin 7irecti9e 2$M1'ME- G200'M02ME-H#

T#e &onst$+&t'on o) a 8'o,as (lant -+st &on)o$- to t#e )ollo.'n, Eston'an le,'slat'on9 1H >uildin Act5 adopted on 1$ 6ay 2002N 2H /lannin Act5 adopted on 13 (o9e%ber 2002N 3H :ater Act5 adopted on 11 6ay 1220N 0H A%bient Air /rotection Act5 adopted on $ 6ay 2000N $H :aste Act5 adopted on 2. January 2000N 'H En9iron%ental "%pact Assess%ent and En9iron%ental Auditin Act5 adopted on 22 February 200$N $H 6ac&inery Safety Act5 adopted on 10 October 200.N ;H /ublic 4ealt& Act15 adopted on 10 June 122$N

2'

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

.H /ublic /rocure%ent Act5 adopted on 20 January 200;N 2H Re=uire%ents for noise5 noise le9el %easurin and noise le9el tracin in e=uip%ent used outdoors and confor%ity assess%ent procedure of e=uip%ent used outdoors 1# Re ulation no# 120 of t&e 6inister of Econo%ic Affairs and Co%%unications of 1' 7ece%ber 2002N and 10H (oise li%it 9alues in residential and recreational areas5 dAellin s and public buildin s and noise le9el %easurin %et&ods# Re ulation no# 02 of t&e 6inister of Social affairs of 0 6arc& 2002# T#e &onst$+&t'on o) a 8'o,as (lant s#all &on)o$- to t#e )ollo.'n, %e0elo(-ent %o&+-ents o) t#e C't* o) Ta$t+ an% le,'slat'on9 1H City of !artu de9elop%ent plan for t&e period 200;<2013N 2H City of !artu en9iron%ent de9elop%ent plan 200'<2013 N 3) City of !artu eneral planN and 0H City of !artu >uildin Re ulations#

2;

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

3. TEC3NOLOGY AN2 14O2UCTION 14OCESS

!&ere is a Aide ran e of tec&nolo y and tec&nical e=uip%ent a9ailable for t&e production of bio as# !&e differences can be in t&e siTe of t&e bioreactor Gfor instance one bi 9ersus tAo s%all onesH5 t&e %i?er type5 t&e nu%ber and confi uration of %i?ers used5 t&e supply syste% of t&e source %aterial5 t&e construction %aterials Gfor instance structures %ade of concrete 9ersus stainless steelN pipes %ade of steel 9ersus plasticsH5 t&e &eatin syste% and insulation %aterials5 t&e roofin type and t&e bio as collection and purification solutions# !&us it is i%portant t&at t&e c&oice is %ade based on t&e specific re=uire%ents and econo%ic feasibility#

3#1 !ec&nolo ical alternati9es

!&ere are different types of tec&nolo y Gbioreactor typesH a9ailable for t&e production of bio as1 dry and Aet fer%entation5 uninterrupted floA Gor constantH and Jpartial fer%entationK Ginterrupted feedin of t&e bioreactor5 A&ic& can be periodic or cyclical and partially interrupted Gse%i<cyclicalHH# >ioreactors can be 9ertical or &oriTontal5 on t&e round or in t&e round5 %ade of %etal or concrete and consist of one5 tAo or t&ree sta es# !&ere are also 9arious types of substrate %i?in tec&nolo y Gfor instance %i?in fro% a central a?is Ait& lar e paddles or fro% t&e sides Ait& se9eral &alt<tilted %i?ersH# /resently5 i%ported tec&nolo y and control auto%atics related to it are used in Estonia5 but t&ese do not AorE efficiently enou &5 since t&e tec&nolo y and e=uip%ent do not fully suit t&e local conditions# :&en %odifyin standard solutions5 EstoniaKs cli%ate conditions Gincludin Aide annual te%perature fluctuationH and t&e specific properties of t&e source %aterial &a9e to be considered# !&e %ost suitable bio as production tec&nolo y for Estonia Aould be Aet fer%entation of %anure GAit& added rassy bio%ass sila e or flourH and dry fer%entation of rassy bio%ass# "n bot& cases t&e fer%entation Aaste could be used as fertiliser in a riculture#

2.

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

1: ;et -et#o% o$ l'<+'% )e$-entat'on = anae$o8'& )e$-entat'on .'t# lo. %$* -atte$ &ontent. !&e dry %atter content in t&e %i?ture G%assH is 0<10Q# "f t&e dry %atter content of t&e source %aterial is &i &er5 it &as to be li=uefied# -sually seAa e is used for li=uefyin # !&is process i9es 1#$< 2#$ %L of bio as per 1 %L of bioreactor 9olu%e Gt&e %et&ane content of t&e bio as bein $0<;0QHN t&e duration of t&e process is app# 20 days# !&e duration of t&e process depends on t&e te%perature5 =uantity and nutrient content of t&e %ass bein fer%ented# 2: 2$* -et#o% o$ %$* )e$-entat'on > anae$o8'& )e$-entat'on .'t# #',# %$* -atte$ &ontent !&e dry %atter content of t&e source %aterial in t&e bioreactor is 2$<3$Q Gin so%e sources startin fro% 12QH# !&is %et&od can also be called dry anaerobic co%postin # !&e duration of t&is process is 1'<21 days and results in $<. %L of bio as per 1 %L of bioreactor 9olu%e Gt&e %et&ane content of t&e bio as bein app# $$QH#

3#1#1 :et fer%entation %et&od For fer%entation of pu%pin < rade substrates t&ere are se9eral pressure floA %et&ods5 a co%plete %i?in %et&od and a special %et&od# /ressure floA %et&od Gpress %et&odH "n t&e case of t&e pressure floA %et&od t&e substrate to be added Gfres&H is pressed for instance Ait& a screA feeder GscreA pu%pH into a &oriTontal or 9ertical cylinder<s&aped fer%entation c&a%ber GbioreactorH or a &oriTontal rectan ular fer%entation c&a%ber# 6i?in of t&e %ass taEes place cross< Aise to t&e floA direction by %eans of a bladed s&aft or special floA pipe#

22

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Fi ure 0 # /ressure floA %et&od Co%plete %i?in %et&od Co%plete %i?in bioreactors are %ainly used for t&e production of a ricultural bio as# !&ese are cylindrical in s&ape and installed 9ertically# !&is %eets t&e re=uire%ents for standard slurry stora e5 A&ic& can also be used after sli &t %odifications# A bioreactor is a tanE Ait& a concrete floor and steel or concrete Aalls# !&e tanE can be partially or entirely in t&e round or entirely on t&e round# !&e tanE is co9ered Ait& a as<proof co9er A&ose structure can 9ary# Co%plete %i?in is ac&ie9ed Ait& a %i?er located in t&e fer%entation c&a%ber# Specific %et&od >esides t&e abo9e<%entioned and Aidely used Aet fer%entation %et&ods5 t&ere are ot&ers t&at cannot be as clearly classified# !&ese are %ostly rarely used and Ait& only local i%portance on t&e %arEet# "n ,er%any5 %i?in of a substrate in a tAo<part bioreactor is used relati9ely fre=uently# "n t&is5 &ydraulic circulation of a substrate taEes place5 A&ic& is possible due to t&e enerated o9erpressure of t&e bio as# !&erein5 electrical ener y is not used for %i?in 5 alt&ou & t&e structure of t&e e=uip%ent is %ore co%plicated and t&e e=uip%ent itself is bi er# "n ,er%any t&ere are o9er $0 bio as plants Ait& a siTe of 000<2$00 %L operatin Ait& t&is tec&nolo y# As a source %aterial5 slurry or slud e fro% a seAa e purification plant is used#

30

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

3#1#2 7ry fer%entation %et&od 7ry fer%entation also alloAs t&e use of 9arious tec&nolo ical solutions# !Ao types of tec&nolo y I cyclical and uninterrupted fer%entation %et&ods I are described beloA by tec&nolo y and e=uip%ent supplier#

3#1#2#1 Cyclical fer%entation %et&od Container %et&od "n t&e container %et&od5 a portable bioreactor or bioreactor A&ic& can be pus&ed to et&er is filled Ait& bio%ass and &er%etically sealed# !&us t&ere is fres& substrate in t&e container A&ic& is %i?ed Ait& a substrate containin bacteria Gfer%entation AasteH# First t&e %icro<or anis%s &eat t&is %ass A&en supplied Ait& %ore air# !&is acti9ates t&e &eat<e%ittin co%postin process# :&en t&e process te%perature &as been ac&ie9ed5 air supply is e?cluded# :&en all of t&e o?y en &as been used5 anaerobic bacteria beco%e acti9e as per t&e Aet fer%entation process5 and t&e as eneration process starts# >io as is collected in t&e fer%entation c&a%bers5 fro% A&ic& it is re%o9ed 9ia pipes and directed into a tanE# !&ereafter it can be used for ener y Gco< eneration of &eat ener y and electrical ener y or co%bustion in a boiler furnace or a co%bustion en ineH# ,ara e and bo? %et&od and suppliers of e=uip%ent >"OFer%[ Fer%entation c&a%ber structures are built fro% concrete plates A&ic& are installed &er%etically ne?t to one anot&er# Fro% t&e outside it looEs liEe a ara e# !o ensure a s%oot& anaerobic fer%entation process5 neA source %aterial is %i?ed Ait& old %aterial at a ratio of 001'0# !&e process taEes place by %eans of percolation GAater circulatin in t&e processH5 A&ic& is sprayed on t&e %aterial to ensure a sufficient population of bacteria and to adCust t&e te%perature#

31

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Fi ure $# >"OFer% tec&nolo y /lanun sbZro RatTEa ,bR 7ry fer%entation taEes place in c&a%bers or bo?es5 but t&e already fer%ented %aterial and t&e %aterial to be fer%ented are not %i?ed and t&e %aterial is not sprayed by percolation fro% abo9e# !&e dry bioreactor is filled fro% abo9e and beloA 9ia a &er%etic door on top of t&e bioreactor# !&e dry bioreactor is co9ered Ait& fil% durin t&e fer%entation process# !&e %aterial is &eated 9ia &eatin pipes installed in t&e Aalls and floors# >efore feedin t&e %aterial5 t&e bioreactor is partially filled Ait& t&e Aater re=uired for t&e process to ensure better %i?in of t&e dry %aterial and t&e Aater# /art of t&e floor of t&e bioreactor is %ade of ti%ber boards installed Ait& spaces betAeen t&e%# !&is part is used to press t&e Aater needed in t&e process fro% beloA up into t&e bioreactor# !&e used Aater is stored in nor%al Aet bioreactors#

Fil% tube %et&od !&e fil% tube fer%entation tec&nolo y i%ple%ents t&e sa%e tec&nolo y as Arappin silo in fil%# "n a process Ait& a foil tube5 elastic polyet&ylene fil% is used A&ic& is filled Ait& t&e source %aterial# !&e Aidt& of t&e tube is 1#$<3#' % and t&e len t& is 30<1$0 %# !&e capacity is up to 1000 tonnes of source %aterial# For initial Aar%in 5 an aerobic process is used# For furt&er &eatin t&e filled fil% tubes can be placed on a &eated concrete base# !o reduce &eat loss5 insulation %ay be added durin t&e fillin of t&e 32

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

tube# !&e upper end of t&e fil% tube is fitted Ait& a collection pipe 9ia A&ic& t&e enerated bio as is sent to t&e consu%er or stora e# After t&e fer%entation period5 A&ic& taEes '<12 AeeEs5 t&e fil% is cut and t&e Aaste %aterial is used for co%postin # >at& or tunnel %et&od Gtunnel fer%entation c&a%berH !&is %et&od can be co%pared to t&e fil% tube %et&od# !&e fer%entation process is t&e sa%e but taEes place in special bat&s or tunnels# !&is re=uires %ore control o9er t&e process# 3#1#2#2 -ninterrupted fer%entation Co%po as %et&od !&e %aterial to be fer%ented is loaded in a pre<tanE Gapp# 2 days stocEH fro% A&ic& a screA con9eyor taEes it to t&e &oriTontally installed bioreactors and ensures a constant supply of t&e %aterial# !&e fres& %aterial is %i?ed in t&e bioreactor Ait& t&e already fer%ented %aterial# 6i?ers in t&e bioreactor ensure t&e stability of t&e process and uninterrupted as production# "n t&is %et&od fer%entation taEes place at a te%perature of $$\C Ga t&er%op&ilic processH# !&e &eat re=uired for t&e process is enerally taEen fro% t&e coolin syste% of t&e as en ine# !&e fer%ented %aterial is co%pressed5 t&e Aater is separated and t&e result is dry co%post# As Aater is recycled in t&e process5 t&ere is no need for additional Aater#

Fi ure '# Co%po as %et&od )inde<)aran %et&od "n t&is %et&od5 fres& %aterial is %i?ed Ait& pre<fer%ented %aterial5 %eanin co%pressed fer%entation Aaste# !&e %aterial is sent 9ia a screA con9eyor to t&e &oriTontally installed 33

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

bioreactor5 A&ere it is constantly %i?ed so t&at t&e %i?ers rotate alternately in bot& directions# !&e bioreactor is e=uipped Ait& a pre<tanE5 A&ic& ensures an uninterrupted process# !&e process taEin place in t&e bioreactor is eit&er %esop&ilic or t&er%op&ilic# "n t&e end5 t&e Aater is separated fro% t&e fer%ented %aterial# !&e Aater is recycled in t&e process# At t&e %o%ent tAo suc& syste%s for t&e reco9ery of a ricultural Aaste are bein built in ,er%any#

Fi ure ;# )inde<)aran %et&od Sila e %et&od "n t&e sila e %et&od5 fer%entation taEes place Ait&out %ec&anical interference in t&e silo# !&e %aterial to be fer%ented is %i?ed Ait& pre9iously fer%ented %aterial in a %i?er installed in front of t&e bioreactor and is fed by a piston pu%p 9ia pipes to t&e upper part of t&e bioreactor# "n t&e bioreactor t&e %aterial %o9es fro% abo9e to beloA5 durin A&ic& bio as is e%itted# As a source %aterial5 bioAaste5 or anic %atter fro% do%estic Aaste5 biode radable industrial Aaste GresidueH5 paper Aaste5 %arEet Aaste5 %anure5 seAa e slud e etc# can be used#

Fi ure .# Sila e %et&od 30

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Ot&er %et&ods "n dry fer%entation5 tec&nolo ies deri9ed fro% t&e li=uid fer%entation are also used# !&ese AorE Ait&out addin e?ternal li=uid Ge# # slurry or rainAaterH# !&ese de9ices operate %ostly Ait& a &oriTontal bioreactor into A&ic& t&e %aterial to be fer%ented is directed5 and a 9ertical tanE A&ic& functions as a secondary fer%entation sta e# !&e %aterial is %i?ed in bot& tanEs5 A&erein to ac&ie9e sufficient %i?in poAer t&e %aterial circulates betAeen t&e tanEs# Fro% t&e pre<tanE5 t&e fres& %aterial is directed into t&e &oriTontal bioreactor# !&e pre<tanE is used to ensure t&e process is uninterrupted# !o da%pen t&e supplied %aterial5 li=uid %aterial fro% t&e secondary bioreactor is fed into t&e &oriTontal bioreactor# !&e fer%ented li=uid %aterial is pu%ped into t&e 9ertical secondary bioreactor# After final fer%entation5 t&e non<returnable %aterial fro% t&e process is transported to t&e tanE of fer%ented %aterial5 fro% A&ere it is used to e# # fertilise fields# Co%bination of fer%entation %et&ods "n addition to t&e %et&ods described abo9e5 fer%entation %et&ods can be co%bined I for instance dry<li=uid<si%ultaneous fer%entation GKVSH G!rocEen<(ass<Si%ultan<Ver Drun [H# !&is process is a co%bination of si%ple dry fer%entation and traditional li=uid fer%entation5 in A&ic& t&e %aterial to be fer%ented is fed into a c&a%ber<liEe dry bioreactor# :&en t&e bioreactor &as been filled5 it is closed and t&e fer%entation roo% is briefly 9entilated before t&e decayin process &eats t&e %aterial to t&e desired te%perature Gapp# 3.\CH# !&ereat5 9entilation is stopped and t&e anaerobic fer%entation process is started5 A&ere t&e %aterial is %oistened t&rou & percolation# After t&is &as been absorbed by t&e %aterial and collected to et&er5 it is sent to t&e li=uid bioreactor5 A&ic& also functions as a percolation tanE# 4ere t&e or anic part is %icrobiolo ically transfor%ed into bio as# "n t&e sa%e Aay5 bio as is also enerated in t&e dry and li=uid bioreactors# 3#2 C&oice of tec&nolo y Considerin t&e natural and socio<econo%ic conditions of t&e City of !artu and t&e nature of t&e source %aterial used5 it is reasonable to c&oose one of tAo alternati9e types of tec&nolo y1 1) fer%entation of li=uid %anure and slurry by addin i%ple%entin t&e co%plete %i?in %et&odN or 2) dry fer%entation of rassy bio%ass by i%ple%entin t&e ara e and bo? %et&od# rassy bio%ass silo or flour by

3$

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

!able $# Features of co%plete %i?in bioreactors SiTe B %aterial C&a%ber capacity up to '000 %L5 in t&e case of bi er structures t&e %i?in and process %ana e%ent beco%es %ore difficult# Suitable for use Ait& pu%pin < rade substrates A&ose dry %atter content is little or a9era e# Suitability 6i?in and feedin e=uip%ent %ust be suitable considerin t&e type of substrate# Suitable for use Ait& all feedin %et&ods# "t is %ore econo%ical to build a fer%entation c&a%ber Ait& a siTe of %ore t&an 3000 %L# >enefits Re ardin feedin %et&ods5 floAin 5 floAin stora e and stora e %et&ods can be used# !ec&nical e=uip%ent can be %aintained Ait&out e%ptyin t&e fer%entation c&a%ber# Fi?in of tanEs in bi er plants is %ore co%plicated# 7isad9anta es 8uicE e?it of substrate is possible# Floatin layer and sedi%ent %ay occur# Vertical cylinder<s&aped tanEs on t&e round5 as Aell as in t&e round# Can be used Ait& or Ait&out a %i?er# 6i?ers %ust be 9ery poAerful# Slurry fer%entation is an e?ception5 since %i?in can be replaced by pneu%atic rin circulation for feedin bio as bacE )ayout into t&e bioreactor# /ossibility of rin circulation1 %i?ers in t&e fer%entation c&a%ber5 an a?ial %i?er on one central 9ertical pipe5 &ydraulic rin circulation by %eans of e?ternal pu%ps5 rin circulation by pressin bio as into a 9ertical control pipe or rin circulation by %eans of pressin as into t&e tanE 9ia noTTles installed in t&e floor# !able '# Features of dry fer%entation tec&nolo y SiTe B %aterial Suitability !&e siTe of buildin s is not li%ited# Structure %ade of %etal or concrete# 6eant for non<pourin substances# 3'

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Can be used Ait& all feedin %et&ods# 6odular structure %aEes it possible to use 9arious solutions accordin to re=uire%ents# )oAer ener y consu%ption as t&ere is less e=uip%ent in9ol9ed# )oAer %aintenance costs and Aear and tear# >enefits ,enerated bio as contains less &ydro en sulp&ide and t&us less as purification is re=uired# !&e fer%entation c&a%ber %ay be transported to t&e source %aterial site# )oAer ener y costs for &eatin since t&e anaerobic process eneratin &eat is only used s&ort<ter%# "n order to ensure constant bio as eneration5 se9eral parallel AorEin %odules are needed# 7ue to insufficient %i?in 5 t&ere %ay be areas A&ere as production is not 7isad9anta es %a?i%ised# !o a9oid e?plosions durin feedin and e%ptyin 5 safety de9ices &a9e to be installed# !o pro9ide t&e %a?i%u% as supply5 a lar e =uantity of infection %aterial is )ayout needed Gearlier fer%ented %ass containin bacteriaH# ,ara es B bo?es

!&e Aet fer%entation tec&nolo y part of t&is feasibility study describes e=uip%ent supplied by t&e ,er%an co%pany ]or >io as A,3 and in t&e dry fer%entation part e=uip%ent supplied by t&e ,er%an co%pany >A) bio as plant )an enau ,%b4 0# /rice en=uiries for t&e purc&ase of t&e e=uip%ent and for t&e construction of a bio as plant Aere sent to se9eral co%panies5 but none responded Ait& a concrete or bindin offer# !&us t&e description of t&e tec&nical specifications of t&e e=uip%ent and profitability calculations &a9e been prepared based on data freely a9ailable on t&e "nternet Gsee C&apter 'H#

3#3 /roduction process

3 0

Source1 &ttp1MMTor <bio as#co%M^ clidRC(%bo<,+p=ECF*"%3 od]3?$eA Source1 AAA#bal<lan enau#de

3;

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

7. 1. 4. 8. 3. 5. 9. 6.
1# RaA %aterial fro% stora e N 2# Crus&erN 3# Stora eN 0# Custo%erN $# /asteuriTeN '# Stora e ;# /urification Gup radin HN .# Fer%enter5 2# Fer%enter Fi ure 2# >locE sc&e%e of bio as production tec&nolo y >io as production %ay be di9ided into four sta es1 1H transport5 stora e5 pre<processin and supply of substrateN 2H separation of bio asN 3H stora e and use of fer%entation AasteN and 0H stora e5 purification and use of bio as# !&ese sta es %ay also be di9ided into t&ree processes1 t&e pre<process5 %ain process and final process# >eloA is a description of all t&ree processes#

2.

3#3#1 /re<process Supply As t&e planned bio as production is not located on t&e site of t&e source %aterial5 t&is %ust be transported fro% elseA&ere# )i=uid %anure and slurry is %ostly transported fro% far%s in t&e area and rassy bio%ass fro% t&e closest %eadoAs or sila e producers# For transport5 road transport is used# !o ser9e t&e bio as station5 al%ost si? Courneys per day Aill be re=uired# :&en transportin %anure it %ust also be considered t&at as %ost far%ers are located aAay fro% t&e city5 t&e transportin of li=uid %anure to t&e city and of fer%entation Aaste bacE &a9e se9eral 3.

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

ne ati9e i%pacts Gunpleasant s%ell and air pollution caused by transportH# "n t&e case of rassy bio%ass t&ere is no proble% Ait& s%ell or air pollution# Stora e Stora e is i%portant to a9oid %aCor c&an es caused by t&e use of different substrates# !&e stora e conditions of different substrates 9ary# Areas re=uired for stora e depend on t&e planned =uantity of substrates and use t&ereof per ti%e unit# "n t&e e9ent t&at substrates are purc&ased5 t&ere are i%portant factors to be considered suc& as contractual relations and t&e obli ations stipulated t&erein and A&en and in A&at =uantity t&e source %aterial Aill be supplied# Re ardin t&e spread of s%ells5 suc& substrates s&ould be stored in &alls e=uipped Ait& air cleaners or biofilters# !&is Aay t&e e=uip%ent is protected and AorE can be done re ardless of t&e Aeat&er# /re<processin !&e fer%entation process and t&us also use of t&e ener y potential of substrates is directly influenced by t&e %et&od and scope of pre<processin # On t&e one &and t&e ai% of pre<processin is to fulfil sanitary re=uire%ents stipulated in laA5 A&ile on t&e ot&er it is to pro9ide as fa9ourable conditions as possible for %icroor anis%s as enerators of %et&ane# /reparation of substrates &as t&e bi est role in opti%isin t&e entire process# !&erein t&e operatin of a bio as plant is Eept Ait&in t&e boundaries of bein under< or o9erloaded# Sortin and re%o9al of obCects Sortin and re%o9al of obCects depends on t&e source of t&e substrate# !&e %ost fre=uent forei n obCects are stones5 A&ic& nor%ally sinE durin pre<stora e# !&ese &a9e to be re%o9ed e9ery noA and a ain# Ot&er forei n obCects are re%o9ed %anually5 eit&er A&en t&e substrate is recei9ed or durin t&e feedin <in process# >ioAaste &as t&e bi est potential to disturb t&e process# Substrate pasteurisation GsanitarisationH !o fulfil p&ytosanitary re=uire%ents for critical substrates stipulated in laA5 t&er%al pre<treat%ent is usually re=uired# !&is is inte rated in t&e bio as production process# /re<processin %eans stora e G&eatin H of a substrate at a %ini%u% te%perature of ;0\C for at least one &our#

32

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

C&oppin Mcrus&in C&oppin or crus&in of a substrate increases t&e area of biolo ical deco%position and also increases t&e production of %et&ane# "t can be said t&at biolo ical processes Ait& c&opped substrate speed up but do not necessarily increase t&e =uantity of bio as enerated# !&e =uantity of %et&ane depends on t&e ti%e stored in t&e fer%entation c&a%ber and on bondin properties# !&e %ost i%portant is t&e c&oice of proper e=uip%ent# Crus&in can be arran ed before t&e substrate is placed in stora e# Very often5 separate de9ices are needed for storin and re%o9in obCects# All %ac&ines are started by %eans of electrical dri9es but %any can be started fro% t&e poAer dri9e of a tractor# For t&e addition of %ore dry %aterial5 c&oppin e=uip%ent is already installed in pre<stora e# 6any pu%pin < rade substrates re=uire c&oppin before pu%pin to ensure no da%a e is caused to t&e e=uip%ent# C&oppin taEes place in pre<stora e or pipes installed before t&e pu%p or directly durin transportation to t&e fer%entation c&a%bers# /re<%i?in B &o%o enisation :et fer%entation re=uires pre<%i?in of substrates by addin Aater to obtain a pu%pin < rade substrate to be fed into t&e fer%entation c&a%ber# As a rule t&is is done in a collection tanE Cust before t&e %aterial is fed into t&e fer%entation c&a%ber# )i=uid used in pre<%i?in is nor%ally taEen fro% A&ere9er possible# :ater already used in t&e process or nor%al fres& Aater can be used# "t is a ood idea to add fer%ented li=uid5 since t&is reduces consu%ption of fres& Aater and it already contains t&e re=uired bacteria plants to infect t&e neA substrate# !&is can be done after t&e sanitation sta e or Ait& pressure floA tec&nolo y# :&en fer%entation li=uid is used %ultiple ti%es it &as to be c&ecEed for deficiencies of nutrients or salts5 since a lacE of t&ese can disturb t&e process biolo y# -se of fres& Aater s&ould be a9oided because of its &i & cost# "f purification or flus&in li=uid is used5 it %ust be ensured t&at disinfection a ents do not disturb t&e fer%entation process as t&ese %ay be fatal to %icrobiolo ical processes# 4o%o eneity of t&e substrates to be added is 9ery i%portant fro% t&e point of 9ieA of t&e stability of t&e fer%entation process# 6icroor anis%s &a9e to adapt i%%ediately to all c&an es and t&is is reflected in t&e =uantity of t&e as enerated# 4o%o enisation of pu%pin < rade substrates is done by %eans of %i?ers in t&e collection tanEs#

00

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Substrate feedin !o ensure a stable biolo ical process5 it is ideal to &a9e a constant floA of t&e substrate# >ut as it is al%ost i%possible to ensure t&is in practice5 %ostly a se%i<cyclical feedin syste% is used# !&e substrate is added unifor%ly in s%all =uantities t&rou &out t&e day# !&us all e=uip%ent related to transport does not need to operate continuously# !&is is ood to EnoA A&en plannin a bio as plant and t&e structure of its units# E=uip%ent used to transport GfeedH t&e substrate depends %ainly on t&e =uantity needed to be transported# !&ere is different e=uip%ent for transportin dry and pu%pin < rade substrates# :&en feedin t&e substrate into t&e fer%entation process5 its te%perature also &as to be %onitored# "n t&e e9ent t&at t&ere is a si nificant te%perature difference betAeen t&e substrate to be added and t&at already fed into t&e fer%entation c&a%ber Gfor instance after pasteurisation or in AinterH t&e fer%entation process is affected and t&is can result in a reduced bio as =uantity# !o sol9e t&is proble%5 tec&nical solutions liEe &eatin de9ices and &eated collection cables &a9e been su ested#

3#3#2 6ain process !&e pre<processed substrate is sent to t&e fer%entation c&a%ber GbioreactorH5 A&ere t&e fer%entation process be ins and as a result bio as is e%itted# !&e fer%entation c&a%ber is t&e &eart of t&e bio as plant# :&en t&ere is no o?y en5 a as %i? Gt&e bio asH of or anic substances is enerated in t&e biolo ical process Gsee Fi ure 10H# !&e process produces t&e folloAin 1 _ bio as G%et&ane GC40H '0 9olu%eQ5 carbon dio?ide GCO2H 3$ 9olu%eQ5 G20I00` CH5 &ydro en sulp&ide G42SH 20I20000 pp%5 nitro en G(2H a2 9olu%eQ5 o?y en GO2H a2 9olu%eQ5 &ydro en G42H a1 9olu%eQHN _ Aater G42OH 0 9olu%eQ _ neA bio%assN and _ &eat# As all four sta es taEe place in one fer%entation c&a%ber5 t&is is called a sin le<sta e production process# As bacteria need different conditions for li9in at different sta es5 a co%pro%ise &as to be found# As t&e bacteria producin %et&ane are t&e %ost sensiti9e and procreate sloAly5 t&ese are nor%ally i9en t&e reatest consideration A&en t&e conditions are establis&ed#

01

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

"n a tAo<sta e production process5 &ydrolysis and acido enesis are spatially separated fro% t&e folloAin sta es# !&is %aEes it possible to obtain %ore suitable en9iron%ental conditions for different bacteria roups5 t&e result of A&ic& is %ore efficient as production# Source %aterial 4ydrolysis

Si%ple or anic co%pounds Acid formation Volatile fatty acids Other products

Acetic acid formation Acetic acid Methane formation H2+CO2

io!as CH"+CO2 Fi ure 2# Sc&e%atic of anaerobic deco%position in bio as production

3#3#3 Final process !&e final process can be di9ided into tAo processes1 stora e and use of fer%entation AasteN and stora e5 purification and use of bio as# !&e fer%ented substrate is re%o9ed fro% t&e &oriTontal fer%entation c&a%bers by addin fres& %ass GA&ic& pus&es out t&e fer%ented %assH# !&is is done usin an o9erfloA or outfloA pipe installed beloA t&e substrate le9el# (or%ally5 9ertical fer%entation c&a%bers are e=uipped Ait& an 02

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

o9erfloA pipe5 A&ic& AorEs as a sip&on to a9oid as bein e%itted 9ia t&is pipe# !&e fer%ented substrate can also be eCected by %eans of pu%ps# :&en t&e proportion of dry substrates is increased5 t&e source of t&e li=uid part %ust be carefully folloAed# :&en %i?in it5 a special space Ga tanEH for t&e stora e of t&e fer%entation Aaste &as to be pro9ided# Stora e tanEs are %ostly %eant for slurry and not&in else can be stored t&ere# !&us5 fro% an econo%ic and tec&nolo ical point of 9ieA it so%eti%es %aEes sense to separate t&e dry and li=uid parts# !&e li=uid part can be re<directed to t&e fer%entation c&a%ber and used as nitro en fertiliser on fieldsN t&e dry part can be co%posted# !o separate t&e dry and li=uid parts5 t&ey are pressed Ait& a sie9e5 tu%blers or screA separators# Fer%entation Aaste fro% li=uid %anure5 slurry and rassy bio%ass can be used to fertilise food plants Ait&out pre<processin # Addin ot&er %aterial GseAa e5 slud e etc#H or A&en %i?in t&ese Ait&out any selection5 all source %aterials &a9e to be pre<processed or t&e fer%entation Aaste &as to pass final processin # Only t&en is it possible to use t&e fer%entation Aaste fertiliser# "n t&e e9ent t&at pre<processin is not carried out5 t&e Aaste can only be used as a fillin %aterial in landscapin and si%ilar AorE# Fro% an econo%ic point of 9ieA it %aEes sense to use fertilisin substances contained in fer%entation Aaste as %uc& as possible# !&ere are tAo possibilities for t&is1 clean substrates s&ould be fer%ented separatelyN or t&e substrate or fer%entation Aaste s&ould pass pre< processin or final processin # :&ic& of t&e tAo is opti%al depends on t&e =uantity of substrates5 t&e oAners of t&e bio as plant and t&e for% of oAners&ip5 t&eir business plan and t&e use of t&e bio as#

3#3#0 ,as purification On a9era e5 bio as enerated in t&e process of anaerobic deco%position of or anic substances contains '0<;0Q %et&ane GC40H5 30<00Q carbon dio?ide GCO 2H5 less t&an 1<2Q &ydro en sulp&ide G42SH and ot&er substances5 plus s%all =uantities of Aater 9apour# Fro% t&is bio as5 %ainly %et&ane is used and t&e rest of t&e ballast &as to be re%o9ed# >io as used as transport fuel is purified Ge# # Aas&edH of sulp&ur co%pounds5 Aater 9apour and carbon dio?ide# For bio as purification5 tAo %et&ods tend to be used1 Aas&in Ait& AaterN and pressure sAin adsorption#

03

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

/resently5 bio as is not purified as bio%et&ane GAit& a %et&ane content of at least 2$QH in Estonia and t&us purification tec&nolo y is not Aell EnoAn# "n addition5 t&ere are no le al rounds and no =uality re=uire%ents for feedin purified bio as into t&e natural as netAorE Gin ot&er Aords1 bio%et&aneH# 3#0 E=uip%ent !&e tec&nolo ical ele%ents needed for bio as production are1 _ bio%ass stora eN _ pre<processin and feedin e=uip%entN _ bio%ass bioreactorN _ bio as stora eN and _ Aaste stora e# !&e tec&nolo ical ele%ents needed for bio as purification are1 loA pressure Gless t&an 0#$ barH membrane tank with a double cover installed after a methane tank; Gfer%entation tanEH to balance non<unifor%ity in production5 purification and useN purification e=uip%ent5 includin a co%pressor GAit& increasin pressure 1HN &i &<pressure tanEsN and fillin e=uip%ent#

As pre9iously %entioned5 t&ere are %any co%panies offerin different Einds of tec&nolo y and e=uip%ent# !&erefore A&en c&oosin t&e e=uip%ent it is i%portant to e9aluate all aspects5 tec&nolo ical conditions5 purc&ase ter%s5 contract ter%s and conditions# 4ere a practical reco%%endation Aould be to asE t&e supplier for a draft of t&e supply contract in t&e early sta es of ne otiations to a9oid surprises later on# !&e c&oice of supplier and opti%isation of in9est%ent costs be ins A&ile de9elopin t&e concept of t&e plant and its tec&nical solutions# :&en c&oosin t&e supplier5 t&e folloAin criteria s&ould be considered1 1# !&e e?perience of t&e e=uip%ent supplier and t&e fle?ibility and inno9ati9e attitude of t&eir solutions# "t oes Ait&out sayin t&at A&en c&oosin a supplier for t&e proCect5 =uotes s&ould be sou &t fro% se9eral suppliers5 and in t&e decision<%aEin p&ase t&e proCects bein carried out by t&e 00

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

supplier s&ould be inspected# :&en c&oosin

possible co<operation partners5 di9ersity and

inno9ati9e attitudes s&ould also be considered i%portant I as t&e conditions in Estonia are clearly different fro% t&e %ain %arEets of e=uip%ent suppliers5 a supplier s&ould be preferred A&o is stron in offerin special rat&er t&an standard solutions# 2# -se of local sub<contractors# As %ost suppliers plan to use local sub<contractors to a reater or lesser e?tent5 t&eir =uote depends on t&e price of t&e sub<contractors5 and fro% t&e point of 9ieA of opti%isin in9est%ent costs5 not usin a JEeys in &andK a ree%ent s&ould be considered I t&e roles s&ould be di9ided in suc& a Aay t&at t&e proCect de9eloper GA&o EnoAs t&e local conditions and sub< contractorsH taEes responsibility for arran in local construction AorE# :&en perfor%ed sEilfully it Aill i9e t&e de9eloper t&e c&ance to sa9e on GconstructionH costs5 but of course t&e e?act di9ision of AorE and responsibility of t&e proCect as a A&ole &as to be a reed Ait& t&e e=uip%ent supplier# 3# Acti9ity plan of t&e proCect# :&en e9aluatin e=uip%ent suppliers it %aEes sense to asE about t&eir plans in ter%s of &oA t&ey are oin to %ana e t&e proCect locally and A&o Aill do t&is# Alt&ou & an action plan for t&e proCect %ay see% of secondary i%portance A&en co%parin =uotes5 it &elps to e9aluate t&e suppliersK e?perience in co%pletin proCects and for%s a basis for ot&er contractual dates# 0# 4ed in of supply risEs# For lar e<scale in9est%ent and construction proCects it is t&e rule rat&er t&an t&e e?ception t&at deli9ery ti%es tend to len t&en and t&e bud et tends to be %ore e?pensi9e t&an a reed5 and t&us fro% t&e point of 9ieA of profitability it is critical t&at e=uip%ent deli9ery contracts are entered into t&orou &ly and e?pertly# Re ardin &ed in 5 contract proCects offered by e=uip%ent suppliers are %ostly unfriendly toAards t&e de9eloper5 and it re=uires a lot of AorE and ne otiatin to ac&ie9e a result A&ic& satisfies t&e de9eloper and is also acceptable to t&e supplier# 4ere a practical reco%%endation is to asE t&e supplier for a draft of t&e supply contract in t&e early sta es of ne otiations# $# Support in operatin t&e plant# Considerin t&at %ost bio as plant suppliers do not &a9e an office in Estonia or anyA&ere in t&e >altic States5 it is also i%portant to discuss a possible co<operation %odel and support syste% for A&en t&e plant is operatin # 4ere it is i%portant to stress t&at A&en c&oosin t&e supplier it is Aort&A&ile asEin A&at Eind of support t&ey are Aillin and able to pro9ide and &oA it Aill AorE in practice considerin t&eir eo rap&ical distance fro% Estonia#

0$

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

"n addition to t&e abo9e<%entioned co%panies G]or co%panies in ,er%any5 Austria and

>io as A, and >A) >io as Anla enbau !&ese include (o9atec&,%b45

)an enau ,%b4H5 =uotes for t&e purc&ase of bio as plant e=uip%ent s&ould be sou &t fro% ot&er t&e (et&erlands# Sc&%acE>io asA,5 >"OFer%,%b45 Ko%po as A,5 CO:A!EC5 4aaseEner ietec&niEA, and 4oSt>#V# Offers for bio as purification e=uip%ent could be sou &t fro% suc& co%panies as Sc&%acE CAR>O!EC4 ,%b45 Cir%ac5 Flotec& and 6! Ener ie#

0'

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

4. TARGET GROUP A!" C#$E!T %A E !&e folloAin c&apter describes t&e tar et roups and final consu%ers A&o are potential re<sellers and users of bio as# :e &a9e %apped t&eir re=uire%ents and interests and potential de%and# 0#1 !ar et roups As t&e ai% of t&e proCect is to pro%ote t&e use of bio as as fuel for city buses and in pri9ate 9e&icles and as t&e best tec&nolo ical solution today for t&e use of bio as as a 9e&icle fuel are 9e&icles e=uipped Ait& co%pressed as en ines5 t&e pri%ary tar et roup for bio as is sellers of co%pressed as# As bio as can be li=uefied and stored in bottles and transported o9er lon er distances5 it is also possible to sell it in as sto9e stores and as car fuel in petrol stations# As t&e use of as Gincludin bio asH as en ine fuel is not Aidespread in Estonia5 t&e %arEet is rat&er li%ited# /resently t&ere is only one co%pany in Estonia sellin co%pressed as GAit& one station in !allinn and one to be opened s&ortly in !artuH I AS Eesti ,aas# >eloA is a eneral description of AS Eesti ,aas5 its re=uire%ents and interest in buyin bio as# 0#1#1 AS Eesti ,aas AS Eesti ,aas is a roup includin AS E, E&itus and AS E, VFr uteenus# !&e %ain acti9ities of AS Eesti ,aas are buyin 5 distributin and sellin natural as# Ot&er acti9ities include %aintainin constructin neA as pipelines and %ana in as syste%s5 as netAorE de9elop%ent# AS Eesti ,aas is a

s&are&oldin co%pany oAned by t&ree lar e as co%panies in Europe I OAO ,aTpro%5 E#O( Ru&r as "nternational ,%b4 and Fortu% 4eat B ,as O* I and s%all s&are&olders Gindi9iduals and le al entitiesH# AS Eesti ,aas &as 0'5'00 consu%ers5 of A&o% 0$5100 are do%estic consu%ers5 1112 co%%ercial consu%ers5 20' industrial consu%ers5 $3 district &eatin and &eatin pro9iders5 si? poAer and &eat co< eneration co%panies and 32 ot&er distribution co%panies# So%e years a o t&e co%pany be an de9elopin a proCect dedicated to t&e use of co%pressed as as en ine fuel# !&ere are tAo co%pressed as stations A&ere it is possible to sell natural as as Aell as bio as# !&e only co%pressed as station operatin in Estonia at t&e %o%ent is located by a trunE road on Suur<SFCa%De Street e?itin !allinn near t&e city li%its GSuur<SFCa%De $'aH# "n t&e near future a co%pressed as station Aill also be opened in !artu5 on !D&e Street# !&e de9elop%ent plans of AS Eesti ,aas include construction of suc& stations in t&e directions of (ar9a and /Drnu and5 if 0;

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

re=uired5 refuellin possibilities Aill also be pro9ided for city buses# Success in introducin t&e subCect of co%pressed as in t&e country and t&e roAin interest of consu%ers in alternati9e en9iron%entally friendly fuels &a9e &ad a positi9e influence# 0#2 Final consu%ers !&e final consu%ers of t&e product s&ould be transport co%panies and pri9ate persons# !&is study includes e9aluation of tar et roups A&o &a9e s&oAn interest in i%ple%entin t&e potential to i%ple%ent %ore as 9e&icles# 0#2#1 >us co%panies A relati9ely lar e transport sector A&ose traffic tra9els in cities Gpublic transportH and betAeen cities and settle%ents Gcounty lines and c&arter bus transportH# At present5 t&e city and county lines are %ostly operated by buses e=uipped Ait& diesel en ines# As t&ere are not a lot of as stations in Estonia and t&e capacity of as tanEs installed in 9e&icles li%its t&eir dri9in ran e5 it is not probable t&at as buses Aill be used in intercity transport5 public transport or c&arter bus transport in t&e near future# !&us a co%pany ser9icin !artuKs urban lines could be a realistic custo%er# As a result of t&e state procure%ent JRe ular public bus transport in t&e City of !artu fro% 01#01#2011<30#0'#201;K &eld by !artu City ,o9ern%ent5 startin fro% 2011 !artuKs urban lines are operated by AS SE>E# Since 6arc& 2011 t&e first fi9e en9iron%entally friendly co%pressed as buses &a9e been operatin on city lines# "n future5 !artu Aill increase t&e proportion of as buses on t&ese lines# "n t&e be innin t&e buses Aill operate on natural as# As bio as production e?pands and it is processed to be used as fuel5 it is also planned to use bio as as fuel for buses# Accordin to t&e infor%ation recei9ed fro% !artu City ,o9ern%ent5 it is also planned to use 2$ GbioH as buses in t&e lon er ter%# "f Ae assu%e t&at t&e annual %ilea e of one bus is .05000 E% and a9era e fuel consu%ption is 0$ litres per 100 E%5 %aEin 3'5000 litres per year5 t&en fro% an ener y point of 9ieA one litre of fuel e=uals app# 1 %L of %et&ane5 so t&e re=uired =uantity of fuel needed to supply !artuKs city lines Aould be at least $1 ? 3'5000 %L R 15.3'5000 %L# as 9e&icles or &a9e

0.

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

:&ereas intercity lines are too lon to operate on co%pressed as5 considerin t&e distances of internal lines Ait&in !artu County5 as buses could be used &ere# "t is esti%ated t&at a co%pressed as bus could dri9e on a full tanE G100<1$0 E H app# 300 E%# At present5 !artu CountyKs lines are operated by AS ,o>us# Accordin to t&e infor%ation on t&eir Aebsite5 t&ey &a9e 130 buses operatin in t&e re ion$N t&e nu%ber of buses used on county lines is esti%ated to be .0# "t is not possible to forecast t&e replace%ent of diesel buses Ait& as buses# >ased on t&e planned proportion of as buses on !artuKs urban lines G10Q in 2012 risin to $0Q in futureH5 t&e potential as re=uire%ent of county lines %ay reac& .00 E per day# :&en t&e netAorE of as stations e?pands5 it Aill also be possible to use as buses on lon <distance lines# 0#2#2 :aste %ana e%ent co%panies Co%panies in9ol9ed in Aaste transport Ait& lar e %ac&ine fleets# Startin fro% 1 February 2011 !artuKs ad%inistrati9e territory is di9ided into four Aaste transport areas operated by Veolia KesEEonnateenused AS and Ra n<Sells AS# !&ese tAo co%panies &a9e o9er 200 special Aaste trucEs# "t is esti%ated t&at 13 Aaste loads ' %o9e daily betAeen !artu and t&e re<loadin station located on t&e territory of Aardlapalu landfill5 A&ic& %eans t&at t&e daily %ilea e of t&e trucEs is o9er 000 E% Gt&e distance of t&e landfill fro% t&e city centre bein 1$#$ E%H# !&us5 Aaste transportin co%panies are attracti9e custo%ers for t&e as station# On t&e one &and5 transport contracts tend to be lon < ter% I Aaste transport contracts %ana ed by t&e City of !artu are entered into for t&ree years# !&is %aEes it possible for t&e Aaste co%panies to %aEe %aCor in9est%ents in as 9e&icles# On t&e ot&er &and5 t&e 9e&icles dri9e s&ort distances5 A&erein fuel econo%y produces re%arEable results# 0#2#3 Co%panies offerin ta?i ser9ices !a?i ser9ices in !artu are pro9ided by al%ost tAenty co%panies and self<e%ployed people# /ursuant to t&e data recei9ed fro% t&e re ister of econo%ic acti9ities5 !artu City ,o9ern%ent &as issued around 2'0 ta?i licences A&ic& are currently 9alid# !&anEs to t&e nu%ber of ta?is in !artu5 t&ey for% an attracti9e tar et roup5 A&o in order to ac&ie9e cost<efficiency Aould liEely be interested in installin a as de9ice in t&eir 9e&icles or buyin a car operatin on co%pressed as# As t&is

$ '

AS ,o>us Aebsite &ttp1MMAAA# obus#eeM^idR1$2$5s as at 1$#0.#2010 /ursuant to t&e data fro% t&e City of !artu :aste /lan5 t&e annual =uantity of do%estic Aaste is 005000 tonnes5 t&e a9era e load of a Aaste trucE is 12 tonnes and t&e nu%ber of AorE days is 2'01 005000 M 12 M 2'0 R 12#.

02

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

in9est%ent is rat&er costly5 it cannot be assu%ed t&at ta?i co%panies Aill transfer to bio as in lar e nu%bers in t&e near future# State support or benefits could %aEe t&is %ore attracti9e# 0#2#0 Ot&er transport co%panies "n addition to t&e co%panies %entioned abo9e5 co%panies operatin Ait& a relati9ely bi %ac&ine fleet also &a9e potential fro% a bio as point of 9ieA# Suc& co%panies include t&ose dealin Ait& car o transport5 lo istics5 road %aintenance5 real estate %ana e%ent5 operational aut&orities5 couriers and postal co%panies# A ood e?a%ple of t&inEin in t&is direction is AS Eesti /ost5 A&ic& &as plans to use fi9e 9ans e=uipped Ait& as en ines in !artu# As t&is is currently a neA5 relati9ely unEnoAn and not co%%only used fuel5 Aider use needs %ore co%%unication and positi9e e?a%ples# 0#2#$ /ri9ate 9e&icles !&ere Aere '$;5;30 re istered 9e&icles accordin to t&e data of t&e Estonian Road Ad%inistration as at 1 January 2011# Of t&ese5 al%ost ;0Q are pri9ately oAned# "n Europe t&ere Aere 2'.50005'.0 9e&icles in 200.5 of A&ic& app# 0#3Q Aere e=uipped Ait& a co%pressed as en ine ;# Out of all European countries5 pri9ate 9e&icles operatin Ait& co%pressed as are %ostly found in "taly5 ,er%any5 t&e (et&erlands5 )it&uania and )at9ia# Alt&ou & petrol and diesel fuel is used %uc& %ore t&an co%pressed as5 it is esti%ated t&at t&e use of co%pressed as Aill increase by around 30Q per year5 A&ic& %eans t&at by 2020 t&e co%pressed as %arEet s&ould increase to 000 billion % 3 per year# "f Ae use t&e percenta e of European co%pressed as 9e&icles in t&e conte?t of Estonia5 based on present nu%bers t&e nu%ber of passen er 9e&icles operatin Ait& co%pressed as s&ould be around 12;0# /resently5 t&e s&are of 9e&icles accordin to fuel used is as folloAs1 9e&icles operatin on petrol1 '2#0'3QN diesel1 30#23QN as1 0#00'QN and electricity1 0#001Q# *et it is EnoAn t&at co%pressed as en ines are %ostly used in trucEs and buses# /assen er car %anufacturers only &a9e a &andful of co%pressed as 9e&icles in t&eir ran es# Often5 co%pressed as is an alternati9e in petrol<based cars# !&ese are called J>Y, fuel carsK# At t&e %o%ent t&ere are al%ost 30 co%pressed as en ine %odels on t&e %arEet fro% all %aCor car %anufacturers I Audi5 C&e9rolet5 Citr@en5 Fiat5 Ford5 4onda5 4yundai5 )incoln5 6ercedes<>enT5 6itsubis&i5 Opel5 /eu eot5 Renault5 !oyota5 SEoda and VolEsAa en#
;

European %otor 9e&icle parc 200.

$0

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

"n early 2011 t&ere Aere '251$0 9e&icles in t&e City of !artu and !artu County5 of A&ic& al%ost ;0Q Aere pri9ately oAned# "n ten years at least $Q of t&ese could be operatin on co%pressed as# Co%pressed as needs to be %ore Aidely introduced to co%panies and pri9ate consu%ers5 and ti%e and support s&ould be i9en to alloA t&e% to beco%e used to t&e neA tec&nolo y# &. CO'PET$T$O! A!A#( $ As bio as production is oriented to t&e Estonian %arEet5 co%petitors %ostly include local bio as plants# As as production and transport is only reasonable A&ere distances are s&ort5 t&e %ain co%petitors are bio as plants located in !artu and surrounds# "n order to pro9ide an o9er9ieA of t&e Estonian bio as %arEet5 beloA is a description of t&e potential production of bio as already e?istin and planned for t&e near future Gsee C&apters $#1<$#3H# /roCects i%portant to t&e City of !artu are described in C&apter $#0# "n Estonia5 9arious bio as<related proCects &a9e been de9eloped for %any years# Re ardin bio as production5 t&e bi est de9elopers are AS Eesti Ener ia5 >altic >io as O and 0Ener ia O5 and on a s%aller scale O 6Fnus 6ineE5 7orano9a >altic O and /O !or%a >io aas# !oday t&ere are only t&ree operatin bio as stations in Estonia5 but in addition t&ere are se9eral bio as stations at t&e de9elop%ent sta e# A ricultural Aaste is already bein processed in t&e bio as station of Saare Econo%ics in J@@ri5 and in t&e near future a bio as plant s&ould be co%pleted in O Ara9ete >io as5 O !artu >io aas in "l%atsalu5 O Vinni >io aas in Vinni and O Oisu >io aas in Oisu# "n future5 bio as stations are also planned to be constructed in /Fl9a5 !or%a and )oole# "n addition5 all Aaste deposits in Estonia %eetin European re=uire%ents also collect bio as# Of t&ese landfills5 only !allinnKs in JFelD&t%e uses as to co< enerate electrical ener y and &eat# !&e ot&ers plan to do so but so far &a9e burnt landfill as in candle burners# As for seAa e purification plants5 bio as is fer%ented in /alCassaare seAa e purification station belon in to !allinna Vesi and a bio as plant is bein de9eloped by AS !artu Vee9DrE# 7e9elop%ent is also planned in Kuressaare# As far as is EnoAn5 plans are not yet fir% in ot&er bi er toAns and cities# 6ost of t&ese proCects &a9e recei9ed support fro% E- funds# "n t&e first sta e of t&e En9iron%ental "n9est%ent Centre %easure J:ider use of reneAable ener y sources to enerate ener yK5 applications for four bio as stations Aere financed I t&ose of O !artu >io aas5 O Ara9ete >io aas5 $1

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

O Vinni >io aas and O Oisu >io aas# !&e En9iron%ental "n9est%ent Centre Aaste %ana e%ent %easure also financed t&e >altic >io as proCect# !&is proCect is about t&e use of separately collected bioAaste in !allinn5 %eanin t&e purification and pre<processin of bioAaste to be used in a bio as plant# !&is proCect is in t&e preparation p&ase# !able ; sets out operatin and planned bio as production by county accordin to t&e source %aterials used# !able ;# Operatin 5 planned and potential bio as production facilities in Estonia ?ase% on a,$'&+lt+$al so+$&e -ate$'al ?ase% on se.a,e sl+%,e 3a$@+ Co+nt* /alCassaare seAa e purification plant of !allinna Vesi /DDsEZla landfill Saare Econo%ics Saa$e Co+nt* Kuressaare Vee9DrE 4a(la Co+nt* Saluta use *east Factory seAa e purification plant LAAne=5'$+ Co+nt* !apa Vesi AS RaE9ere Vesi AS I%a=5'$+ Co+nt* (ar9a Aater purification plant Ta$t+ Co+nt* >io as station of !artu Vee9DrE BA$0a Co+nt* ?ase% on lan%)'ll ,as !allinn )andfill in JFelD&t%e

AS !alle

O Vinni >io aas

O !artu >io aas O Ara9ete >io aas O Oisu >io aas

Aardlapalu landfill

$2

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

$#1 >io as production facilities based on a ricultural Aaste $#1#1 O Saare Econo%ics in J@@ri !&is plant5 A&ic& is located in ValCala %unicipality on t&e island of Saare%aa and A&ic& %ostly operates on a ricultural Aaste5 Aas opened in 200$# "t is possible to process al%ost 005000 tonnes of biolo ical Aaste per year at t&e plant# !&e &eat production capacity is up to 3$00 6: and electrical ener y capacity up to 2200 6: per year# Electrical ener y enerated on t&e basis of slurry s&ould co9er t&e ener y re=uire%ents of t&e plant itself as Aell as t&e re=uire%ents of ValCala pi far% belon in to t&e fora e plant roup# !&e e=uip%ent at t&e plant co%es fro% a >el ian co%pany5 ECO6AC (V# !&e cost of t&e bio as plant Aas 3#$ %illion euros# $#1#2 Ara9ete bio as plant !&is bio as plant is a Coint 9enture establis&ed on t&e basis of a co<operation proCect betAeen Ara9ete A ro and >altic >io as# !&e %ain source %aterial is cattle %anure fro% Ara9ete A ro and !a%%saare G305000 tonnes of dry %anure per year and $05000 tonnes of slurry per yearH# !&e electrical ener y capacity of t&e plant is 1#; 6:# 4eat is to be sold to Ara9ete settle%ent5 %a?# 3000 :& per year# !&e in9est%ent re=uired to construct t&e plant is app# 0<0#$ %illion euros# Construction AorE started in Ainter 2011 and t&e plant is planned to be launc&ed in autu%n 2011 or Ainter 2011< 2012# $#1#3 O Vinni >io aas A bio as station to be operated usin pi and cattle %anure usin %et&ane<fer%entation tec&nolo y planned for Vinni settle%ent# !&e annual processin capacity of t&e plant is ..5000 tonnes of pre9iously unfer%ented pi and cattle slurry and dry %anure# !&e annual bio as production capacity of t&e plant is app# 2#2. %illion % 3 G300<3$0 %3 per &ourHN t&e output of t&e as en ine is 3$0 % 3M&N t&e &eat eneration of t&e as en ine is 11;$ E:N t&e electrical ener y output of t&e as en ine is /el R ;.; E:N &eat ener y in total is app# 10#3 %illion E:&MyearN electrical ener y in total is app# '#2 %illion E:&Myear# !&e appro?i%ate cost of t&e proCect is 0#2 %illion euros# $#1#0 O Oisu >io aas !&is planned bio as plant is located in !iiri %unicipality in JDr9a County# !&e source %aterial of t&e plant is pi and cattle slurry and dry %anure# Electrical ener y and &eat ener y Aill be produced fro% bio as enerated by usin %et&ane fer%entation# "n total ;$5000 tonnes per year of slurry and $3

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

1$5000 tonnes per year of dry %anure Aill be processed1 in total 205000 tonnes per year# !&e tec&nical para%eters of t&e electrical ener y and &eat ener y production plant are bio as production of app# 2#2. %illion %3MyearN 300<3$0 %3M&N &eat ener y in total of app# '#;$ %illion E:&MyearN and electrical ener y in total of '#2. %illion E:&Myear# Electrical ener y Aill be fed to t&e electricity netAorE of AS Eesti Ener ia and &eat ener y partially used for tec&nolo ical re=uire%ents and probably also in Oisu settle%ent# !&e appro?i%ate cost of t&e plant is 2#2 %illion euros# /ossible ot&er de9elopers of bio as production are !or%a /Fllu%aCandusosaZ&in 5 )oo%sete CDDt%ete EDitle%ise AS and AS !alle #

$#2 >io as production facilities operatin on Aaste slud e B seAa e sedi%ent $#2#1 /alCassaare seAa e purification plant of !allinna Vesi SeAa e enerated in t&e City of !allinn and its surroundin s is treated at t&e /alCassaare seAa e purification plant5 A&ic& is located in t&e nort&<Aest of t&e city5 on /alCassaare peninsula# SeAa e is purified by %eans of %ec&anical5 c&e%ical and biolo ical tec&nolo y# /urified Aater is directed into t&e sea 3 E% fro% t&e coast 9ia a pipe5 at t&e end of A&ic& t&e dept& of t&e sea is 2' %etres# !&e seAa e purification process consists of four sta es A&ose end product is Aaste slud e A&ic& is fer%ented in %et&ane tanEs A&ere5 initiated by bacteria5 or anic %atter deco%poses# 7urin anaerobic stabilisation5 bio as ric& in %et&ane is separated fro% t&e slud e# !&is bio as is used in tec&nolo ical processes in t&e slud e processin plant5 as Aell as in t&e biolo ical purification process to produce t&e re=uired air and to &eat buildin s# :aste slud e is stabilised and dried in t&e slud e processin unit and t&ereafter %i?ed Ait& additional substances# Slud e is co%posted or stored in landfill and t&e co%post is used as 9aluable or anic fertiliser# $#2#2 Kuressaare Vee9DrE seAa e purification station "n t&e purification syste% belon in to Kuressaare Vee9DrE AS5 seAa e of se9eral settle%ents on Saare%aa is purified and t&ereafter directed into t&e sea# !&e purification syste% consists of a %ec&anical purification section and tAo parallel bio<purification lines# SeAa e is %ec&anically purified by %eans of rids5 sand traps and a sand separator# !&ereafter Aater is directed into a biolo ical purification syste%# As a result of t&e purification processes5 Aaste slud e is enerated I part of A&ic& is returned to t&e startin point of t&e biolo ical purification process Ganaerobic $0

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

c&a%berH5 A&ile e?cess slud e is sent to t&e slud e stabiliser# "n autu%n 2002 Kuressaare seAa e syste% obtained an anaerobic fer%entation reactor for seAa e sedi%ent in A&ic& it is possible to produce &eat ener y and electrical ener y fro% bio as# "n addition5 it is possible to use Aaste slud e fro% bio<ponds and Aaste slud e fro% s%all purification plants5 as Aell as Aaste fro% rease traps5 fis& Aaste and c&eese A&ey# $#2#3 Saluta use *east Factory seAa e purification plant "n Saluta use *east Factory located in Ko&ila %unicipality in Rapla County5 Aaste processin is carried out by %eans of Aater purification tec&nolo y# >io as is produced fro% slud e enerated in t&e purification process# !&e yeast factory uses .000 % 3 of 100Q su ar beet %olasses annually5 A&ic& is used to produce $000 tonnes of pressed yeast# !&is results in 225000 %L of seAa e# A9era e daily outfloA of unpurified seAa e is 2;' %L G12;<0$0 %L per dayH#

$#2#0 (ar9a Vesi AS seAa e purification plant !&is purification syste% consists of tAo lines5 one of A&ic& is %eant for t&e purification of do%estic seAa e and t&e ot&er for t&e purification of tec&nolo ical Aater# !&e daily capacity of t&e urban< do%estic seAa e purification line is 3.5$00 % 3 and t&e daily capacity of t&e industrial seAa e purification line is ;200 %3# 7o%estic seAa e is collected fro% t&e City of (ar9a and (ar9a<JFesuu# A portion of t&e slud e separated in t&e secondary settle%ent tanE is returned to t&e first sta e of bio< purification Gt&e anaerobic c&a%berH# E?cess slud e is directed into t&e slud e co%pactin syste%# Co%pacted slud e is fer%ented in t&e %et&ane tanE# ,aseous %et&ane enerated durin fer%entation is burnt# )ater on5 in9est%ents are planned to use %et&ane in t&e boiler &ouse# $#2#$ AS RaE9ere Vesi seAa e purification plant At t&e %o%ent5 AS RaE9ere Vesi is dealin Ait& a preli%inary proCect accordin to A&ic& an anaerobic reactor for t&e stabilisin of seAa e sedi%ent Aill be built for t&e RaE9ere purification plant# "n addition to t&e seAa e purification sedi%ent fro% AS RaE9ere Vesi5 t&e planned bio as plant Aill also use sedi%ent fro% RaE9ere )i&aEo%binaat AS and fro% s%all purification plants in )DDne<Viru County# !&e enerated bio as Aill be used for oAn consu%ption# /ossible seAa e stations A&ic& could produce bio as are O JDr9e >iopu&asti5 !apa Vesi AS and ot&er plants operatin Ait& si%ilar tec&nolo y# $$

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

$#3 >io as production facilities based on landfill ases $#3#1 !allinn landfill in JFelD&t%e !allinnKs landfill in JFelD&t%e co9ers !allinn and its surroundin %unicipalities# Alto et&er it &as al%ost $005000 clients# !&e area of t&e landfill is ''#; &a# Collection of landfill as is or anised by O !allinna /rZ ila aas5 and in co<operation Ait& !allinna /rZ ila AS5 a &eat and electrical ener y co< eneratin plant operatin on landfill as is bein de9eloped# !&e plant Aas co%%issioned in February 2010 Ait& a poAer output of 1#2 6:# !&e total cost of t&e in9est%ent Aas app# 2 %illion E-R#

$#0 >io as production proCects in !artu County At present it is EnoAn t&at it is planned to erect tAo bio as production plants in !artu County1 t&e "l%atsalu bio as plant and AS !artu Vee9DrE seAa e purification plant Gsee C&apters $#0#1<$#0#3H# "n addition to t&ese5 t&ere is an on oin de9elop%ent proCect to study possibilities and solutions for t&e co%%ercial i%ple%entation of Aardlapalu landfillKs ases# At t&e %o%ent no bio as production plants are operatin # !&e first to be co%pleted s&ould be t&e proCect of AS !artu Vee9DrE# !&is and also potentially t&e Aardlapalu landfill proCect are t&e bi est co%petitors to t&e neA bio as plant5 since t&anEs to fa9ourable location t&ey can supply t&e co%pressed as station situated in !artu Ait& bio%et&ane# >ut accordin to t&e infor%ation a9ailable to us today5 t&ere s&ould not be a lot of co%petition5 since it &as been deter%ined in t&e case of t&ese proCects t&at t&ere are %ore profitable alternati9es t&an sellin t&e product for car fuel# !&ese t&ree GseAa e purification5 landfill as and t&e neA bio as station to be erectedH could co<operate and5 if necessary5 support one anot&er# Also5 in ter%s of t&e source %aterial5 t&ese t&ree do not co%pete Ait& one anot&er5 since t&ey use different %aterials# Re ardin t&is5 t&e planned bio as plant %ay face co%petition fro% "l%atsalu bio as plant5 A&ic& also operates on %anure and slurry# $#0#1 SeAa e purification plant of AS !artu Vee9DrE Since 2002 AS !artu Vee9DrE &as been de9elopin a proCect for anaerobic sedi%ent %ana e%ent facilities for its AasteAater purifier# "n addition to seAa e sedi%ent5 it also %aEes it possible to $'

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

process ot&er or anic Aaste e# # ani%al and 9e etable fat Aaste# !&e neA tec&nolo y Aill sol9e t&e proble% of t&e bad s%ell of t&e purifier affectin residents and %aEe it possible to collect bio as e%itted in t&e process5 A&ic& in turn can be used to enerate &eat and electrical ener y# !&e construction AorE is bein financed fro% t&e European -nion Co&esion Fund Gal%ost ;3QH and by AS !artu Vee9DrE# :&en sedi%ent fro% rease traps is also used in seAa e sedi%ent fer%entation5 t&e annual %et&ane production is esti%ated to be 0005'20 % 3 of C40 .# Ener y produced fro% t&e bio as is used for oAn consu%ption#

$#0#2 "l%atsalu bio as plant A proCect de9eloped by O !artu >io aas to produce bio as fro% cattle %anure# !&e bio as plant is a Coint 9enture establis&ed on t&e basis of a co<operation proCect betAeen !artu A ro and >altic >io as# !&e %ain source %aterial to be used is cattle %anure and pi %anure fro% !artu A ro and bioAaste fro% t&e City of !artu and surroundin s# !&e plant Aill be e=uipped Ait& tAo bioreactors Ait& a 9olu%e of 3$00 % 3 and one secondary bioreactor Ait& a 9olu%e of 2;00 % 3# "f t&e production 9olu%e of one bioreactor is app# .15300 % 35 t&e production capacity of %et&ane Aill be al%ost 1'35000 %3 per year# "n t&is case t&e annual bio as production capacity is 2;15''; % 35 for A&ic& 115312 tonnes of %anure and slurry is re=uired# !&is is to be supplied by AS !artu A ro far%s# "n t&e source %aterial sur9ey of bio as production carried out by t&e Estonian "nstitute for Sustainable 7e9elop%ent5 t&is a%ount of a9ailable %anure and slurry is e?cluded5 but in future5 A&en "l%atsalu bio as plant is e?panded and its production capacity increased5 A&ic& in turn Aill also increase source %aterial de%ands5 t&is particular plant %ay beco%e a critical co%petitor to ot&er bio as plants operatin Ait& %anure# !&e electrical ener y capacity of t&e plant is 1#$ 6:# 4eat Aill be sold to "l%atsalu settle%ent I %a?# 2.00 6:& per year# !&e app# in9est%ent needed to construct t&e plant is up to 0#$ %illion euros# Construction started in su%%er 2010 and s&ould be co%pleted by 2013# $#0#3 Aardlapalu landfill "n 20115 7orano9a >altic O started construction AorE on a as collection syste% in t&e closed Aardlapalu landfill located in lenur%e %unicipality near !artu# !&is AorE Aas part of lar e<scale
.

En9iron%ental "n9est%ent Centre5 AS !artu Vee9DrE5 O 6Fnus 6ineEN Applied researc& final report entitled J/ossibilities of usin bio as enerated fro% seAa e fer%entation in !artu city busesKN bDs%De<!allinn<!artu 2002#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

closure AorE on t&e landfill site# !&e co%pany &as ordered a study to deter%ine t&e =uantity of landfill ases a9ailable and !artu City ,o9ern%ent &as ordered a study to e9aluate t&e possibilities of usin landfill ases for co%%ercial purposes# "t &as been esti%ated t&at Aardlapalu landfill could enerate $33 % 3 of bio as per &our5 %eanin 05''250.0 %3 per year# "t &as been discussed t&at t&e collected and processed as could be used as en ine fuel for !artuKs public transport5 in a co< eneration plant for t&e production of electrical ener y or sold to t&e natural as netAorE# !&e study s&oAed t&at fro% a co%%ercial point of 9ieA t&e %ost profitable option Aould be t&e co< eneration plant5 A&ere electrical ener y is sold directly to t&e netAorE and &eat cannot be used# !&e %ost unprofitable acti9ity is t&e use of bio as for en ine fuel# !&e total production capacity of t&ese t&ree bio as production and collection syste%s is esti%ated to be al%ost $50005000 %3 of %et&ane per year# !&is =uantity Aould be sufficient to supply !artuKs public transport Ait& en ine fuel5 but as alternati9e areas of use of bio as are econo%ically %ore profitable5 t&e production de9elopers plan to use it to produce electrical ener y for t&eir oAn needs5 electrical and &eat ener y in a co< eneration plant5 and sellin it to t&e natural as netAorE# (ot %uc& potential is seen in bio as as an en ine fuel# !&e %et&ane =uantity produced at t&e "l%atsalu bio as plant is only sufficient to supply local consu%ers Ait& electrical and &eat ener y# Also5 t&e =uantity of bio%et&ane produced in t&e purification plants of AS !artu Vee9DrE Aill initially be sufficient to satisfy t&e needs of t&e co%pany only# Alt&ou & t&e %et&ane =uantities enerated at t&e Aardlapalu landfill are %uc& lar er5 studies &a9e s&oAn t&at it is not feasible to purify as enerated in t&e landfill for car fuel and t&at it Aould %aEe %ore sense to use it for &eat and electrical ener y production# !&us it can be assu%ed t&at t&e de9elopers Aill base t&eir acti9ities on econo%ical rationality5 Ait& %ost bio%et&ane bein used for ener y production# >ut as t&e landfill is able to enerate lar e =uantities5 a certain a%ount of %et&ane could also be supplied by Aardlapalu landfill# !&is Aould pri%arily be to ensure a stable supply of as in t&e e9ent t&at t&e neA bio as plant is not capable of producin %et&ane in suc& lar e =uantities#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

).F$!A!C$A# A!A#( $ A!" E*A#UAT$O! OF F$!A!C$A# PER PECT$*E !&e ai% of t&e financial analysis is to deter%ine and co%pare t&e profitability of t&e construction of t&e bio as plant and t&e use of bio as in !artuKs city buses# !&e financial analysis of t&e bio as plant i9es an e9aluation of potential additional or risin inco%e and costs# For t&is reason tAo possible types of bio as production tec&nolo y and financial indicators are e9aluated and t&e cas& floAs of t&e scenarios are co%pared# !&e scenarios are t&e folloAin 1 Scenario 1 I Aet processin by usin ]or >io as A, e=uip%ent5 in A&ic& case t&e in9est%ent Aould be P250;.5;00# As a source %aterial %anure fro% cattle far%s Gdiluted %anure5 20Q AetH Aould be used# !&e ener y 9alue of t&is Aould be 1 tonne of %anure R 20 %L of as#

!able 1# !ec&nical data of bio as plant operatin Ait& li=uid %anure and slurry %ade by ]or >io as A, /roperties 1 2 3 0 $ ' ; . 2 Source %aterial =uantity >io as production Electrical ener y production capacity 4eat ener y production capacity >ioreactors /ersonnel re=uire%ents Area re=uire%ent ,eneration of li=uid bio fertiliser ,eneration of dry bio fertiliser -nit tMday %3Mday E: E: pc &Mday &a tMday %3Mday Value 1$0 3'00 20 300 1 2 0#0 10 130

Scenario 2 I dry processin by usin e=uip%ent %ade by >A) bio as plant )an enau ,%b45 in A&ic& case t&e in9est%ent Aould be P35$0050'0#

$2

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

!able 2# !ec&nical data of bio as plant operatin on rassy bio%ass %ade by >A) >io as Anla enbau )an enau ,%b4 /roperties Source %aterial =uantity >io as production Electrical ener y production capacity 4eat ener y production capacity >ioreactors G$00 %3H Fer%entation period /ersonnel re=uire%ents Area re=uire%ent ,eneration of li=uid bio fertiliser ,eneration of dry bio fertiliser -nit tMday %3Mday E: E: pc day &Mdays &a tMday %3Mday Value 3. $0.0 $00 ';$ ; 2.<3$ 3 1$0<200 < <

1 2 3 0 $ ' ; . 2 1 0

!&e scenarios include t&e folloAin in9est%ent obCects1 land cost I 0#0 &ectares outside of t&e City of !artuN construction cost of plantN and cost of re=uired e=uip%ent# "n addition to bio as production e=uip%ent5 a as purifier is also needed for t&e production of bio%et&ane used for car fuel# !&e profitability analysis is based on t&e tec&nical data and e=uip%ent prices of t&e SAedis& co%pany 6alber :ater A> Gsee !able 3H# !able 3# !ec&nical data of bio as purification syste% 6alber CO6/AC! %ade by 6alber :ater A> /roperties 1 2 3 0 $ ' ; . Capacity Operation %et&od ,as purification le9el 6et&ane loss 6et&ane content -se of c&e%icals E%ission le9el :ater use Value 7ependin on slud e 1$0< 2000 (%3M& >ased on Aater flus&in 4i & a1Q S2;Q G%ay be adapted to .2I20Q C40H 7oes not contain c&e%icals )oA 6ini%u% '0

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

2 10 11

&eatin Co%pressor type Classification

Additional &eatin is not re=uired Oil<free co%pressor 6eets S") classification

'#1 Operatin cost Gin 2013H S&ena$'o 1 > .et ($o&ess'n, !O!A) O/ERA!"O("(, COS!S Source %aterial /roduction buildin costs5 electrical ener y Salary fund >ooEEeepin /lant and e=uip%ent %aintenance Office costs )and ta? "nsurance 20'5'2;#$' 1025$'.#0; 1'5;$1#;2 03532;#3; 12.2#11 225$.0#2$ 0'''#$2 32.;#20 $1$'#0$

S&ena$'o 2 > %$* ($o&ess'n, !O!A) O/ERA!"O("(, COS!S Source %aterial /roduction buildin costs5 electrical ener y Salary fund >ooEEeepin /lant and e=uip%ent %aintenance Office costs )and ta? "nsurance '';500; $;253'' 1'5;$2 03532; 12.2 135203 0''; 32.; $1$'

'1

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

'#2 Operatin inco%e S&ena$'o 1 !O!A) O/ERA!"O("(, COS!S $125.;;#0$

S&ena$'o 2 !O!A) O/ERA!"O("(, COS!S $125.;;

'2

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

'#3 "n9est%ent cost S&ena$'o 1 IN5EST6ENT )and cost Gunder t&e plantH /roduction facilities Access c&ar es ,as purifier G2;QH 7esi n docu%entation and trainin Total 'n0est-ent /rice 2011 $$5000 ;;05000 30$5000 1510$5000 $;5000 2,372,000 2012 $;50;$ .005'$0 3'05$2$ 1512'5$2$ $25$'$ 2,!78,7!0

S&ena$'o 2 IN5EST6ENT )and cost Gunder t&e plantH /roduction facilities Access c&ar es ,as purifier G2;QH 7esi n docu%entation and trainin Total 'n0est-ent /rice 2011 $$5000 251005000 $05000 1510$5000 $25000 3,!02,000 2012 $'5'$0 251'35000 $15$00 151;253$0 $35$'0 3, 0!,060

'3

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

'#0 /roCect profitability S&ena$'o 1 IN5EST6ENT 14OFITA?ILITY Yea$ 1e$'o% In0est-ent Operatin costs Operatin inco%e

2011

2012 1 2,!78,7!0 0 0

2013 2 0 20'5'2. $125.;;

201! 3 0 2135$20 $305030

201 ! 0 220502$ $$050';

2016

0 0 0

0 22;5'3. $2051;0

Cas& floA Cu%ulati9e cas& floA 7iscount rate A9era e C/" for 1$ years (o%inal discount rate /resent 9alue of cas& floAs "nternal inco%e rate Real discount rate (/V "RR

0 <250;.5;00 0 <250;.5;00 '#00Q 2#.2Q 2#0'Q '325.10 13#02Q '#00Q

3135202 <251'$5021

3205210 <1.00 $;;

32252;1 <1$10 '0$

3''5$3$ <1510.50;0

Relati9e S&are capital S&ort<ter% loans 005000 Forei n capital A9ailable capital and )on <ter% loans E=uity capital 250;.5;00 005000 reser9es !otal 005000 25$1.5;00 1$Q 2Q 100Q A%ount 250;.5;00 /rice '#00Q i%portance 2.Q

!&e su% of initial in9est%ent for Aet processin tec&nolo y is P250;.5;00#

'0

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

As at 1 January 2011 t&e price of natural as of AS Eesti ,aas for transport fuel is P0#0.M%L# !&e operational cost of t&e proCect is calculated based on t&e bio as re=uire%ent G150005000 %LMyearH stated in t&e initial tasE %ultiplied by t&e product sales price Gesti%ated as P0#$2M%L in 2013H# "n t&is case t&e annual feasible sales inco%e is P$125.;;#0$# !&e si%ple pay<bacE period of t&e proCect Aill be ;#21 years#

S&ena$'o 2 IN5EST6ENT 14OFITA?ILITY Yea$ 1e$'o% In0est-ent Operatin costs Operatin inco%e

2011

2012 1 3, 0!,060 0 0

2013 2 0 '';500; $125.;;

201! 3 0 '.;5;$1 $305030

201 ! 0 ;0.500' $$050';

2016

0 0 0

0 ;2.5311 $2051;0

Cas& floA Cu%ulati9e cas& floA 7iscount rate A9era e C/" for 1$ years (o%inal discount rate /resent 9alue of cas& floAs (/V "nternal inco%e rate "RR Real discount rate

0 <35$0050'0 0 <35$0050'0 '#00Q 2#.2Q 2#0'Q <352235.20 <12#'3Q '#00Q

<10;51;0 <1$3531. <1$;5$32 <35'$15230 <35.005$0. <352'250.'

<130513. <0502'5220

Relati9e S&are capital S&ort<ter% loans 005000 Forei n capital A9ailable capital and )on <ter% loans E=uity capital $2$5'02 005000 reser9es !otal 005000 $'$5'02 1$Q ;Q 100Q '$ A%ount $2$5'02 /rice '#00Q i%portance 23Q

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

!&e initial in9est%ent a%ount for t&e second analysed scenario Gbio as production based on dry processin H is P35$0050'0# As t&e present 9alue of cas& floAs and t&e internal profit rate are ne ati9e5 it Aould only be feasible to e?ecute t&e proCect Ait& t&e &elp of lon <ter% support or in9estors# E?planations to t&e financial analysis and calculations are i9en in t&e folloAin anne?es1 Anne? 3 Financial analysis and financial perspecti9es of construction of bio as plant Anne? 0 >io as plant calculations I Aet processin Anne? $ >io as plant calculations I dry processin

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

+. 4ISC ANALYSIS !&is c&apter describes 9arious risEs5 t&e probability t&ereof and Aays of %iti atin t&e%# RisE ele%ents are1 1H risEsN 2H t&e probability t&at risEs Aill occurN and 3H t&e scope of Gne ati9eH i%pact if a risE occurs# !&e folloAin is a description of 9arious types of risEs and an e9aluation t&ereof#

;#1 Econo%ic risEs Econo%ic risEs include t&e folloAin aspects1 1H t&e lon pay<bacE period of t&e proCectN 2H a lacE of support for reneAable ener yN 3H a dra%atic increase in t&e prices of t&e source %aterialN 0H a lacE of t&e source %aterialN $H &i &er t&an e?pected operatin costs of t&e plantN 'H co%petition in t&e for% of fuel produced on t&e basis of et&anol etc#N ;H co%petitionN and .H t&e price of natural as#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

)on pay<bacE period of proCect A lon pay<bacE period is one of t&e %aCor econo%ic risEs related to t&e construction of t&e bio as plant# !&e pay<bacE period %ay 9ary dependin on t&e in9est%ent scope5 t&e e=uip%ent used5 t&e price of t&e source %aterial and reco9ery possibilities of fer%entation Aaste# Econo%ic risE is still outAei &ed by positi9e en9iron%ental aspects# )acE of support for reneAable ener y >iofuel is e?e%pt fro% e?cise duty till t&e end of 2011# At t&e %o%ent5 prolon in t&e e?e%ption fro% e?cise duty is not planned5 since t&is %easure &ad not been successful in pro%otin t&e use of reneAable fuel# >ut Ait&out e?e%ption fro% e?cise duty t&e use of biofuel in transport beco%es econo%ically =uestionable G>ert 4ol% 20111 Analysis of Adore "! proCect about co%plications in usin biofuelH# 7ra%atic increase in source %aterial prices !&e price of slud e %ay increase due to increased de%and for a substrate needed for t&e production of bio as# :&ile at t&e %o%ent t&e price of t&e %aCority of bioAaste is al%ost Tero5 t&is could increase in future due to increased co%petition# !&is risE could be %iti ated by si nin lon <ter% co< operation contracts Ait& suppliers of source %aterials# )acE of source %aterial )acE of t&e source %aterial %ay be related to an increase in substrate de%and and an increased nu%ber of bio as plants# One of t&e Aays of %iti atin t&is risE is to consider different source %aterials in t&e desi n p&ase of t&e proCectN anot&er is to purc&ase %ulti<purpose bio as production e=uip%ent or to plan for additional production and source %aterial alternati9es Gfor instance5 additional use of landfill bio asH# !&e risE can also be %iti ated by si nin lon <ter% co<operation contracts Ait& suppliers of t&e source %aterial# 4i &er t&an e?pected operatin costs of t&e plant "n Estonia t&ere is 9ery little e?perience in operatin bio as plants# !&ere is no EnoAled e about suitability of e=uip%ent tested in :estern European cli%ates in t&e Estonian cli%ate5 about testin s%aller e=uip%ent in Estonia5 its durability5 %aintenance costs and so on# !&us t&e operatin costs of t&e plant %ay be &i &er t&an e?pected# '.

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Co%petition in t&e for% of fuel produced on t&e basis of et&anol etc# Co%petition in en ine fuels produced on t&e basis of et&anol or si%ilar to GbioH as# "n Estonia t&ere are feA %ac&ines at present operatin on E.$ Gfuel produced on t&e basis of et&anolH# Retail sales of fuel re=uire lar e in9est%ents and nobody Aants to risE an in9est%ent creatin a loss in an acti9ity Ait& loA sales 9olu%e# !&us t&ere is no serious co%petition in t&e for% of en ine fuels produced on t&e basis of et&anol# *et it is not i%possible t&at t&e situation Aill c&an e in future#

Co%petition :&en t&e price of bio as depends solely on price c&an es in natural as and t&ere is no furt&er co%petition on t&e fuel %arEet5 t&e price of bio as Aill be directly related to t&e price of natural as# /rice of natural as :&en t&e price of bio as is not co%petiti9e co%pared to t&e price of natural as Gi#e# it is %uc& &i &erH5 it is difficult to find consu%ers for t&e bio as produced# ;#2 Or anisational risEs

Or anisational risEs include t&e folloAin 1 1H tea% e?pertiseN and 2H trainin costs# !ea% e?pertise E?pertise a%on t&e desi ners5 builders and operators of bio as plants is 9ery i%portant# !&eir acti9ities %ust be based on occupational safety5 en9iron%ental and ot&er re=uire%ents# "nco%petent AorEers could cause unprofitable or dan erous situations# !rainin costs !rainin costs a%on t&e proCect tea% %ay be &i &er t&an planned#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

;#3 )e al risEs

)e al risEs include t&e folloAin aspects1 1H re ulations o9ernin t&e %ana e%ent of bio as plantsN 2H re=uire%ents for t&e reco9ery of fer%entation AasteN and 3H risEs related to t&e construction of t&e plant and risEs t&at %ay be faced after construction# Re ulations o9ernin t&e %ana e%ent of bio as plants At t&e %o%ent t&ere are no specific re ulations for bio as plants in Estonia5 but t&is situation could c&an e once t&e area de9elops# Re=uire%ents for t&e reco9ery of fer%entation Aaste At t&e %o%ent t&ere are no united re=uire%ents in Estonia for t&e reco9ery of t&e fer%entation Aaste enerated durin bio as production# *et c22 section 0 article $ of t&e :aste Act rants t&e 6inister of t&e En9iron%ent t&e ri &t to i%pose &andlin re=uire%ents on biode radable Aaste5 A&ic& %ay also in9ol9e t&e %ana e%ent t&ereof by %eans of anaerobic deco%position or bio as production# -nfortunately t&is re ulation &as yet to be i%posed and as far as is EnoAn5 it is currently bein de9eloped in t&e 6inistry of t&e En9iron%ent# 6ost liEely t&e re ulation Aill include criteria for processin products of biode radable Aaste Gco%post and fer%entation productsH5 A&ic& in fulfillin certain conditions G%aterial =uality and re ular control t&ereofH Aould enable it to be e?cluded fro% t&e cate ory of specific fer%entation products and release it into Jfree circulationK# For instance5 in t&e European Co%%ission t&ese conditions are bein de9eloped and are liEely to be appro9ed soon# !&e sooner t&e conditions for reco9ery of fer%entation Aaste beco%e clear5 t&e sooner t&e bioAaste enerated durin t&e operation of a bio as plant Gin t&e e9ent t&at all re=uired conditions are fulfilledH can be used as fertiliser in a riculture and ardenin and t&e sooner it Aill be possible to earn additional profit#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

RisEs related to construction of t&e plant and risEs t&at %ay be faced after construction RisEs durin t&e construction and operation of a bio as plant are related to accidents t&at could occur if t&e re=uired buildin and safety re=uire%ents are not folloAed#

7.! So&'al $'sDs Social risEs are t&e folloAin 1 1H t&e opposition of residentsN and 2H reduced earnin capacity of reneAable ener y in co%petition Ait& Aaste incineration plants# Opposition of residents !&e J("6>* syndro%eK %ay be seen a%on residents or opposition re ardin one or anot&er aspect of a bio as plant# !&e acrony% ("6>* co%es fro% En lis&1 not in my backyard5 %eanin a biogas plant may be necessary, but it should be located somewhere else, not close to where I live # !o reduce opposition5 t&e public s&ould be in9ol9ed and infor%ed t&rou &out t&e construction process5 people s&ould be i9en t&e c&ance to e?press t&eir opinions etc# 7oubts and =uestions s&ould be ansAered in a Aell<ar ued %anner# Reduced earnin capacity of reneAable ener y in co%petition Ait& Aaste incineration plants :&en t&e planned Aaste incineration plants are co%%issioned in Estonia5 t&e production capacity t&ereof %ay be so bi t&at t&ere is no %oti9ation to collect and process sorted Aaste# "n an indirect %anner t&is could influence t&e collection of bioAaste and t&e profitability of a bio as plant in usin reneAable ener y#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

8. EN5I4ON6ENTAL I61ACT

Conditionally5 t&e i%pact of a bio as plant on t&e a%bient en9iron%ent can be di9ided into tAo roups1 1H en9iron%ental i%pact durin constructionN and 2H en9iron%ental i%pact durin operation# En9iron%ental i%pact in t&e tAo alternati9e locations Gclose to t&e AS !artu Vee9DrE seAa e purification plant or to Aardlapalu landfillH and of t&e tAo tec&nolo ical alternati9es GAet or dry processin H &a9e been e9aluated to et&er# !&is approac& Aas selected because eneral en9iron%ental i%pact durin t&e construction and operation of t&e plant are si%ilar# 6iti ation reco%%endations are described separately# Also5 t&ere is a description of t&e differences in en9iron%ental i%pact of dry and Aet processin # A pre<assess%ent c&ecE<list of en9iron%ental i%pact is also attac&ed#

.#1 En9iron%ental i%pact caused by construction

En9iron%ental i%pact caused by t&e construction of a bio as plant is di9ided into t&e folloAin sub< roups1 1H i%pact on li9in natureN 2H i%pact on t&e soil and landscapeN 3H i%pact on t&e air en9iron%entN 0H i%pact on t&e Aater en9iron%entN $H i%pact on t&e 9isual en9iron%ent and cultural &erita eN ;2

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

'H noise and 9ibrationN ;H socio<econo%ic i%pactN and .H i%pact on &u%an &ealt&5 Aell<bein and co%fort# .#1#1 "%pact on li9in nature

"%pact on li9in nature consists of t&ree sub< roups1 1H i%pact on 9e etationN 2H i%pact on ani%alsN and 3H nature conser9ation issues# "%pact on 9e etation 7urin construction5 t&e e?istin 9e etation Aill be preser9ed as %uc& as possible# >ut t&ere Aill still be a ne ati9e i%pact on 9e etation# After construction5 reenin of t&e site Aill be i%ple%ented to co%pensate for earlier i%pact on 9e etation# "%pact on ani%als Construction AorE Aill &a9e no i%pact on t&e &abitation of ani%als and %i ration routes Aill not be c&an ed or blocEed# (ature conser9ation issues !&ere is a (atura 2000 bird conser9ation area in pro?i%ity to AS !artu Vee9DrE# 7urin construction it %ust be taEen into consideration t&at durin nestin season t&e birds s&ould be disturbed as little as possible GnoiseH# "%pact on soil and landscape 7urin construction5 soil Aill be re%o9ed and re<located to construct foundations and bases# !&e re%o9ed soil Aill later be used in reenin AorE5 landscapin and plannin # !&ere Aill not be any

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

%aCor c&an es to t&e relief# Soil pollution is not foreseen if operational and en9iron%ental safety re=uire%ents are folloAed# "%pact on t&e air en9iron%ent One %aCor i%pact on t&e air en9iron%ent durin construction is dust and t&e s%all =uantity of reen&ouse ases e%itted by %ac&inery# Odoriferous substances Aill not be e%itted durin construction AorE# 7ust 7ust %ay be e%itted durin construction and by transport 9e&icles5 but it Aill &a9e no critical i%pact on t&e a%bient air en9iron%ent# ,eneration of dust is s&ort<ter% and %ar inal# "n t&e case of prolon ed &ot and dry Aeat&er t&e soil s&all be Aatered5 if re=uired# .#1#2 "%pact on t&e Aater en9iron%ent "%pact on t&e Aater en9iron%ent is di9ided into tAo roups1 1H i%pact on round AaterN and 2H i%pact on surface Aater# "%pact on round Aater 7urin construction5 Aater Aill %ostly be used for do%estic consu%ption and t&e =uantity Aill be relati9ely little# !&is Aill &a9e no critical i%pact on t&e en9iron%ent# "%pact on surface Aater !&ere Aill be no critical i%pact on surface Aater durin construction# "f t&ere are proble%s Ait& e?cess Aater Ge# # an unusual =uantity of rainAaterH a solution Aill be found accordin to t&e =uantity and outfloA needs# A ne ati9e i%pact on surface and round Aater %ay occur in t&e e9ent of t&e accidental leaEa e of fuel or rease# !&erein5 en9iron%ental safety re=uire%ents %ust be folloAed in t&e stora e and use of fuel and5 in t&e case of pollution5 t&e re=uired deconta%ination %easures %ust be taEen i%%ediately# "f all safety %easures are folloAed5 no ne ati9e i%pact on t&e Aater en9iron%ent is e?pected# ;0

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

.#1#3 "%pact on t&e 9isual en9iron%ent and cultural &erita e 7urin t&e planned acti9ity relief5 e?istin 9e etation and natural ele%ents s&all be considered as %uc& as possible and relief and underbrus& Aill be c&an ed as little as possible# !&e ai% is to reduce t&e i%pact of t&e plant on t&e 9isual en9iron%ent# !&e bio as plant is not located in a built<up area of cultural or en9iron%ental 9alue# .#1#0 (oise and 9ibration (oise and 9ibration is %ainly caused by construction %ac&ines# >est practice rules are folloAed5 %eanin t&at construction AorE stops fro% 23100<0;100# ,enerated noise is %ini%ised durin t&e day by usin %ac&ines A&ic& are tec&nically in ood order and by a9oidin unnecessary noise# As t&ere is a (atura 2000 bird conser9ation area in close pro?i%ity to one of t&e location alternati9es GAS !artu Vee9DrEH5 durin t&e nestin season as little e?ternal noise s&ould be enerated as possible# .#1#$ Socio<econo%ic i%pact 6aCor socio<econo%ic i%pact related to t&e construction of a bio as plant is1 1H labour forceN 2H social issuesN and 3H Aaste %ana e%ent# )abour force (eA Cobs Aill be establis&ed for builders5 en ineers and GindirectlyH ser9icin transport Gdri9ersH and e=uip%ent %anufacturers# "ncreasin tec&nolo ical and professional EnoA<&oA a%on local AorEers depends on t&e re=uire%ents in t&e construction process at t&e plant# Social issues !&e J("6>* syndro%eK# /eople li9in in t&e area %ay oppose t&e construction of t&e plant# (obody doubts t&e need to build t&e plant5 but t&ey do not Aant it close to A&ere t&ey li9e# Opposition %ay be caused by e%otional ar u%ents#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

:aste %ana e%ent Construction Aaste and %i?ed do%estic Aaste is enerated durin construction# !&ese are sorted and &anded o9er to a Aaste &andler A&o acts pursuant to t&e re=uire%ents stipulated in t&e :aste Act# ,eneration of 9olatile Aaste at t&e construction site Aill be a9oided# Co9ered containers Aill be used# .#1#' "%pact on &u%an &ealt&5 Aell<bein and co%fort !ransport Gtraffic loadH !&e transport load depends on t&e traffic of %ac&inery transportin construction %aterials# Critical i%pact on &u%an &ealt&5 Aell<bein and co%fort is not foreseen# Accidents !&e probability of accidents causin a si nificant i%pact on t&e en9iron%ent is little if buildin safety and en9iron%ental re=uire%ents are folloAed#

.#2 En9iron%ental i%pact caused by t&e co%%issionin of t&e plant

!&e structure describin t&e en9iron%ental i%pact caused by co%%issionin a bio as plant is si%ilar to t&e description of i%pact caused by its construction# En9iron%ental i%pact caused by t&e co%%issionin of a plant is di9ided as folloAs1 1H i%pact on li9in natureN 2H i%pact on t&e soil and landscapeN 3H i%pact on t&e air en9iron%entN 0H i%pact on t&e Aater en9iron%entN $H i%pact on t&e 9isual en9iron%ent and cultural &erita eN 'H noise and 9ibrationN ;'

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

;H socio<econo%ic i%pactN and .H i%pact on &u%an &ealt&5 Aell<bein and co%fort# .#2#1 "%pact on li9in nature "%pact on 9e etation !&ere Aill be no i%pact on 9e etation durin t&e bio as production process itself# *et bio as production &as an indirect i%pact on plant production 9ia t&e use of fer%entation Aaste as fertiliser# "n addition to fertilisin properties5 t&e use of fer%entation Aaste reduces t&e spread of Aeeds on fields5 since t&e %aCority of suc& seeds are destroyed durin t&e production process# *et it &as to be considered t&at in t&e e9ent t&at t&e di estate used as fertiliser contains pieces of plastic Gfor instance plastic ba sH5 t&e 9alue of it is %uc& loAer t&an t&at of a clean di estate# As a rule5 t&e ratio of carbon and nitro en is s%aller in fer%entation Aaste t&an in bio%ass itself# !&us t&e bindin capacity of nitro en Ait& t&e soil is loAer and t&e a9ailability of nitro en contained in fer%entation Aaste for plants i%pro9ed# !o reduce a%%oniac losses5 fer%entation Aaste s&ould enter t&e soil as soon as possible G>io as production and use# 6anual 2002H# "%pact on ani%als >io as production &as no critical i%pact on ani%als# (ature conser9ation issues !&ere is a (atura 2000 bird conser9ation area and &abitat of certain species of orc&ids and ranunculi in t&e 9icinity of AS !artu Vee9DrE# As t&e planned acti9ity re%ains outside of t&e bird area and does not coincide Ait& t&e location of t&e nature conser9ation sites5 t&ere Aill be no critical ne ati9e i%pact on t&e natural en9iron%ent# .#2#2 "%pact on t&e soil and landscape Operatin a bio as plant in9ol9es t&e use of rease in s%all =uantities and %aintenance c&e%icals re=uired for t&e operation of %ac&ines# "%pact on t&e soil is related to e%er ency cases and accidents5 t&e probability of A&ic& is 9ery loA#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

.#2#3 "%pact on t&e air en9iron%ent !&e closed syste% of bio as production is not influenced by Aeat&er conditions# Also5 s%ell is Eept under control5 since as is directed into tanEs A&ere it is used for consu%ption1 not&in is e%itted into t&e outside air# S%ells Alt&ou & t&e production process of bio as taEes place is in a closed syste%5 unpleasant s%ells %ay still be produced# !&is is %ainly durin t&e storin of substrate before production of bio as starts# Spread %ostly depends on t&e direction of t&e Aind# Accordin to data fro% 200$ recei9ed fro% !artu<!Fra9ere %eteorolo ical station5 t&e pre9ailin Ainds in t&e !artu area are sout&<Aest and Aest G!artu >io aas O "l%atsalu bio as and co< eneration plant# /re<assess%ent of strate ic e9aluation of en9iron%ental i%pact# 2010H# "t is esti%ated t&at in t&e fer%entation process5 t&e s%ell of %anure and ot&er biode radable Aaste Aill be reduced by up to .0Q Gaccordin to !uo%isto 6attila5 200$H# "n order to reduce s%ell pollution5 t&e substrate %ust be stored accordin to re=uire%ents Gfor as s&ort a period as possible5 Ait& ood 9entilation in t&e roo%H and e%ission of ases collected in t&e fer%entation process and s%ells into t&e outside air s&ould be a9oided# E%ission of reen&ouse ases On a9era e5 bio as contains '0<;0Q %et&ane5 30<00Q carbon dio?ide5 less t&an 1Q &ydro en sulp&ide and to a lesser e?tent ot&er ases# "n &i & te%perature conditions t&e fer%entation process is s&orter5 %et&ane production is reater and t&e substrate is sanitised %ore efficiently G!uo%isto 200$H# A bio as plant e%its relati9ely feA reen&ouse ases5 but e%ission of a%%onia is relati9ely &i & due to t&e fact t&at fer%entation Aaste and di estates enerated after as production are spread on t&e surface# !o reduce a%%oniac losses5 t&e di estate s&ould enter t&e soil as =uicEly as possible G>io as production and use# 6anual 2002H# "n t&e process of bio as production5 nitro en is bound in t&e di estate5 reducin t&e e%ission of nitro en o?ide Ga stron reen&ouse asH co%pared to t&e co%postin of biode radable %atter or storin in landfill# At t&e sa%e ti%e5 fer%entation Aaste %ust %eet certain =uality re=uire%ents Gto be probably stipulated in futureH so t&at it can be used as a fertiliser on fields#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

6et&ane enerated in bio as production is used for ener y production# !&is reduces t&e total e%ission of %et&ane as a reen&ouse as# "n eneral5 t&e use of fossil fuels is reduced as is t&e e%ission of reen&ouse ases caused by it# "%pact of total pollutants !&e ener y consu%ption of a bio as plant is relati9ely &i &5 A&ic& %eans t&at part of t&e enerated bio as %ust be consu%ed locally for t&e production of electrical ener y# "f t&e source %aterial includes to?ic %atter5 t&e fer%entation process %ay sloA doAn or to?ic co%pounds Ge# # a%%oniu%H %ay be enerated# "n anaerobic processes5 %any pollutants %ay also be da%a ed# *et it &as to be considered t&at t&e content of &ea9y %etals is not reduced in t&e process# >acteria are Eilled %ore easily t&an 9iruses# 6anure can be pasteurised before or after fer%entation by Eeepin it at a te%perature of app# ;0 oC for one &our so t&at t&e pat&o ens are Eilled Gaccordin to !uo%isto >endi?en 200$H# "t &as to be considered t&at t&e production process depends on %any factors Gsuc& as te%perature5 p4 le9el and =uantity of inco%in source %aterialH and a c&an e in one of t&e para%eters %ay sloA doAn t&e entire process# A s%all =uantity of pollutants is also e%itted into t&e outside air durin t&e transport of substrate Ge?&aust ases of trucEsH5 but on t&e A&ole t&is does not &a9e a critical i%pact on t&e en9iron%ent Gt&e daily substrate needs of a plant are app# 3<0 trucEsH# .#2#0 "%pact on t&e Aater en9iron%ent "%pact on round Aater !&e daily round Aater consu%ption of a plant is appro?i%ately 2$0 % 35 A&ic& does not &a9e a critical i%pact on t&e en9iron%ent# At present it is not EnoAn A&et&er t&e Aater re=uired for t&e operation of t&e plant Aill be taEen fro% a bored Aell or t&e local Aater syste%5 or A&et&er surface Aater Aill be used instead# "n t&e latter case5 acti9e coal filters are liEely to be used to purify production Aater# "%pact on surface Aater )i=uid used in t&e bio as production process %ust %eet stipulated criteria5 A&ic& depend %ostly on t&e para%eters of t&e bio as e=uip%ent used# "%portant factors are t&e content of dry %atter and biolo ically easily deco%posin or anic carbon co%pounds5 as Aell as t&e concentration of co%pounds A&ic& %ay &inder fer%entation Gfor instance saltsH# Solid particles %ay create proble%s ;2

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

in t&e noTTles of a seAa e syste%5 biolo ically deco%posin carbon co%pounds %ay cause bad s%ells and a &i & content of (4 ?<( or sulp&ides %ay i%pair t&e anaerobic deco%position process# SeAa e enerated in t&e production and purification of bio as %ust be collected accordin to re=uire%ents and furt&er %ana e%ent %ust be arran ed# Soil plannin s&all foresee t&e feedin of stor% Aater into reen areas5 A&ere it Aill filter into t&e soil# .#2#$ "%pact on t&e 9isual en9iron%ent and cultural &erita e )andscape !&e planned bio as plant Aill not cause si nificant c&an es to t&e 9isual en9iron%ent of eit&er location or &a9e any i%pact on cultural &erita e# !&e pre%ises of AS !artu Vee9DrE and Aardlapalu landfill are located outside of t&e City of !artu and residential areas# .#2#' (oise 7urin operation of t&e plant5 noise Aill be e%itted by operatin as e=uip%ent Gt&e co%pressor and as purification syste%H# !&us e=uip%ent %ust be installed in a sound<insulated closed construction so t&at t&e noise le9el for t&e e?ternal en9iron%ent re%ains beloA li%it 9alues stipulated in t&e re ulation J(oise li%it 9alues in residential and recreational areas5 in dAellin s and public buildin s and %et&ods to %easure noise le9elK Gcate ory """ I %i?ed areaN e=ui9alent le9el of industrial co%panies in a neA planned area1 durin dayti%e $$ d>5 at ni &t 0$ d>H# .#2#; Socio<econo%ic i%pact )abour force !&e bio as plant Aill per%anently e%ploy one %aintenance %ec&anic A&ose tasEs it Aill be to %onitor t&e operatin of e=uip%ent5 9erify t&e confor%ity of t&e product to t&e stipulated para%eters etc# and a plant %ana er to deal Ait& ad%inistrati9e issues# /ositi9e i%pact on re ional e%ploy%ent Aill be s%all# )and use !&e appro?i%ate siTe of t&e plant is 0#0 &ectares# As no residential areas or public buildin s are planned to be constructed on eit&er location5 t&e plant presents a possibility to use t&e area as reasonably as possible#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Social issues (on<confor%ity of t&e plantKs operations and results to t&e stipulated re=uire%ents %ay create distrust in bio as production and t&e feasibility of usin bio as in public transport# :aste %ana e%ent :&en Aaste %ana e%ent re=uire%ents are folloAed durin t&e production process and operation of t&e plant t&ere is no si nificant ne ati9e i%pact on t&e en9iron%ent# "n bio as production5 unused bioAaste and resources G%anure and rassy bio%assH are re<used5 reducin t&e proportion of total consu%ption of non<reneAable ener y sources# !&e production of a bio as plant reduces t&e need to use suc& non<reneAable ener y sources# !&e bio as producers can be sure t&at production of reneAable fuel is also supported at t&e state le9el5 and %aterial and non< %aterial total re9enue recei9ed are i%portant %oti9ators influencin local Aaste %ana e%ent# !&erein5 sustainable t&inEin is also pro%oted at t&e local le9el# .#2#. "%pact on &u%an &ealt&5 Aell<bein and co%fort !ransport Gtraffic loadH !raffic of %ac&inery operatin t&e plant Aill depend on t&e =uantities of t&e re=uired source %aterial# >ased on t&e data used for t&is analysis5 t&e daily need for substrate at t&e plant Aill be app# 3<0 trucEs# !&e nu%ber of %ac&ines itself does &a9e a si nificant influence on traffic load5 but transportin of dry %anure in open trucEs %ay cause unpleasant s%ells for t&e residents of !artu# Also5 %aterial %ay fall off t&e trucEs onto t&e streets5 A&ic& %eans t&at streets Ait& fre=uent trucE traffic %ust be cleaned %ore often# RisE of en9iron%ental accidents 6et&ane GC40H &as a %ild narcotic effect# "t is fla%%able and %ay for% an e?plosi9e %i?ture Ait& air# ,as reacts e?plosi9ely Ait& o?idisers or &alo ens# As %et&ane is a suffocatin as5 %et&ane 9apour in a poorly 9entilated5 enclosed space %ay pus& o?y en out of t&e air# "n&alation of suc& a as for a prolon ed period %ay cause suffocation# As %et&ane is a as Ait&out any colour or s%ell Gor Ait& only a sli &t s%ellH5 it is al%ost i%possible for &u%ans to percei9e it# !&e %et&ane concentration A&ere t&e air beco%es fla%%able and e?plosi9e is %uc& loAer t&an t&e concentration causin suffocation# !&us suffocation &aTard is %uc& loAer t&an t&e e?plosion dan er#

.1

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

>ut

&i &

%et&ane

concentrations

%ay

still

be

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to

life

G&ttp1MMAAA#nrel roAt&linE#co%Mbio as<ener y#p&pH# ,as leaEa e fro% t&e bio as plant itself or as pipes %ay be caused by o9erloadin of bio%ass5 accu%ulation of or anic %atter or incorrect production e=uip%ent# Ot&er i%pact factors 6aCor factors influencin t&e production process of bio as are te%perature and &u%idity# !&e latter can cause t&e corrosion of %etal parts of e=uip%ent5 but at t&e sa%e ti%e a 9ery dry cli%ate can cause cracEs in AallsMstructures G&ttp1MMAAA#%olecular<plant<biotec&nolo y#infoMfuel<biotec&nolo yMdisad9anta es<of<bio as#&t%H#

.#3 6iti atin ne ati9e en9iron%ental i%pact factors

"n order to a9oid t&e &aTard of e?plosion and asp&y?ia durin %et&ane collection5 9entilation and as collection de9ices %eetin re=uire%ents s&all be used# As %et&ane is fla%%able5 s%all as leaEs fro% pipes and de9ices s&all be i9en attention# !&us t&e e=uip%ent and distribution pipes s&all be periodically c&ecEed#

!o a9oid t&e i%pact of an unstable cli%ate on t&e production process5 t&e folloAin %easures s&ould be taEen1 1H buildin a separate construction around t&e bioreactor for protection purposesN 2H ensurin additional &eatin efficient insulation of t&e buildin N and 3H usin syste% Gcirculatin &ot an AaterH

G&ttp1MMrudar#ruc#dEMbitstrea%M1.00M3'3M1M!&eV7e9elop%entVof#pdfH# !o reduce a%%oniac losses5 fer%entation Aaste s&ould enter t&e soil as =uicEly as possible G>io as production and use# 6anual# 2002H# !&e fer%entation Aaste stora e areas s&all be &er%etically co9ered# Also5 a secondary fer%entation process s&all taEe places in stora e# !&is Aill enable t&e e%ission of aseous co%pounds to be reduced and t&e bio as enerated in stora e to be collected and used G>io as production and use# 6anual# 2002H# (or%ally t&ere is no %ec&anical treat%ent of fer%entation Aaste in t&e bio as de9ice Gseparation of li=uid and dry ele%entsH5 so practically no seAa e is enerated# 7ependin on .2

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

t&e substrate5 under certain conditions it %ay be necessary to re%o9e t&e dry part of fer%entation Aaste Gto re%o9e nutrients or to?insH# "n t&is case t&e li=uid part is not sent to t&e de9ice# :&en addin t&e li=uid part to t&e fer%entation process a ain5 t&e folloAin s&all be obser9ed1 1H content of 9olatile fatty acidsN 2H content of %ineral saltsN 3H content of a%%oniu% nitro enN and 0H acidity Gp4H# As t&ese para%eters &a9e a direct influence on t&e stability of t&e fer%entation process5 t&ese s&all be re ularly %easured and co%pared Ait& t&e bio as output of t&e de9ice G>io as production and use# 6anual# 2002H# So%eti%es t&e pre<processin of li=uid to be sent to t&e fer%entation process is re=uired# (or%ally it is sufficient to use p&ysicalMc&e%ical GanaerobicH processin G>io as production and use# 6anual# 2002H# E%er ency situations related to bio as plant production are enerally t&e sa%e as t&ose on construction sites enerally# -sually t&ese are caused by ne li ence of basic safety rules Gt&e AorEplace does not confir% to occupational safety re=uire%ents5 insufficient trainin of e%ployees5 insufficient internal control of t&e AorEin en9iron%ent etc#H# 7urin t&e operation of a bio as plant5 tec&nical safety re=uire%ents s&all be obser9ed for tanEs5 as production and purification e=uip%ent5 %easurin and %onitorin e=uip%ent and co%%unications# Also5 en9iron%ental i%pact is not e?cluded# !o a9oid &aTards5 t&e presence of unaut&orised people on t&e pre%ises s&all be a9oided# All plant roo%s s&all be pro9ided Ait& Aell<functionin 9entilation# /lannin of a bio as plant and its desi n s&all %eet t&e re=uire%ents stipulated in le islation on en9iron%ent protection# Stor% Aater s&all be directed into stor% Aater drainsN do%estic Aater s&all be directed into do%estic Aater drains# Fallin of %aterial onto streets durin transport s&all be a9oided# !rees Ait& dendrolo ical 9alue Gif presentH s&all be preser9ed# A as collection and reco9ery syste% %eetin all re=uire%ents s&all be built# :&en usin fer%entation Aaste5 t&e en9iron%ental re=uire%ents stipulated for t&is s&all also be considered# Fer%entation Aaste enerated in bio as production fro% or anic %aterial enerally =ualifies as Aaste and its furt&er use is re ulated by t&e :aste Act and sub<le islation i%posed on t&e basis t&ereof# "f fer%entation Aaste is produced fro% %anure or &erbalMnatural biode radable ordinary Aaste &as been added to %anure durin t&e .3

Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

fer%entation process A&ic& is not co9ered by t&e :aste Act Gc 15 section 25 article 'H5 t&e Aaste %ay be re arded in e=ual =uantity Ait& t&e %aterial used as t&e source %aterial# :&en folloAin certain ele%entary for%alities Gre ular c&ecE<ups of input and outputH it can be re arded as a product Ait& stable properties Ge=ual to %anureH for t&e use of A&ic& far%ers are not re=uired to &a9e a Aaste per%it or to re ister it pursuant to t&e :aste Act GViisi%aa 2011H. "f Aaste co9ered by t&e :aste Act Gincludin seAa e sedi%entH is used as anaerobically deco%posin %aterial in bio as production5 fer%entation Aaste is co9ered by t&e :aste Act and all rele9ant re=uire%ents apply# Re ulation no# ;. of t&e 6inister of t&e En9iron%ent of 30 7ece%ber 20025 accordin to A&ic& fer%entation is one processin %et&od of sedi%ent5 stipulates directions and conditions for t&e use of fer%ented sedi%ent Gfer%entation productH# "f one of t&e i%portant co%ponents in bio as production is seAa e sedi%ent5 t&e use of t&e fer%entation product is liEely o9erned in t&e first place by t&is re ulation5 as Aell as by t&e :aste Act5 A&ic& stipulates Gor Aai9esH t&e re=uire%ent of a Aaste per%it# 4erein re ulation no# 21 of t&e 6inister of t&e En9iron%ent of 21 April 2000 is also rele9ant if t&e user of t&e fer%entation Aaste Ais&es to &a9e t&e re=uire%ent of a Aaste per%it Aai9ed GViisi%aa 2011H.

"n su%%ary5 it %ay be said t&at t&e planned acti9ities are not e?pected to cause notable ne ati9e en9iron%ental i%pact# /ublic profit fro% t&e recyclin of bioAaste and reduced use of fossil fuels balances out t&e e?tensi9e econo%ic in9est%ents and probable local en9iron%ental i%pact# *et attention &as to be paid to ensurin t&at t&e culti9atin of rassy bio%ass does not turn out to be a separate oal to t&e e?tent t&at it &as a ne ati9e i%pact on culti9atin plants needed for food by reducin t&e territory re=uired to culti9ate t&e%#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

.#0 Co%parison of alternati9es and i%ple%entation assess%ent G eneral reco%%endationsH

"n t&is analysis tAo location alternati9es are discussed I t&e 9icinity of AS !artu Vee9DrE and Aardlapalu landfill I and tAo tec&nolo ical alternati9es I Aet and dry processin # :et processin %eans t&e processin of dry %anure and dry processin is %i?in dry %anure Ait& rassy bio%ass# En9iron%ental i%pact caused by t&e construction of a bio as plant is enerally t&e sa%e for bot& alternati9es# >ut t&ere are %inor differences in operatin a bio as plant dependin on t&e use of different fer%entation tec&nolo ies# "n t&e case of dry fer%entation t&ere is less s%ell5 since t&e source %aterial is bio%ass and not %anure# "n addition5 t&ere is less of a leaEa e risE of nutrients5 since t&ere is no transport or stora e of li=uid %ass# >ut dry processin %eans %ore co%plicated %i?in 5 loadin of bio%ass and e%ptyin of t&e reactor# Also5 t&e proportion of fer%ented dry bio%ass enerated durin dry processin is =uite &i & and can be furt&er anaerobically co%posted GSc&Dfer5 )e&to5 !eye 200'H# So far it &as been found in dedicated scientific literature t&at t&ere re%ains too little data on t&e en9iron%ental i%pact and econo%ic profitability of dry processin GVo el5 >arT5 Al&aus 200.H# Re ardin t&e location alternati9es5 t&e difference lies in t&e pro?i%ity of conser9ation areas and &abitats of protected species listed in en9iron%ental re=uire%ents# !&ere is a (atura 2000 bird conser9ation area and &abitat of certain species of orc&ids and ranunculi in t&e 9icinity of AS !artu Vee9DrE# !&us it &as to be ensured durin construction t&at possible nestin birds are disturbed as little as possible and t&at t&e &abitats of t&e protected plant species are not destroyed#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

Su%%ary

>io as is a reneAable ener y source A&ic& is beco%in %ore and %ore popular in Europe5 includin Estonia# "t is an en9iron%entally friendly alternati9e to oil s&ale fuel and petroleu%5 enablin t&e reco9ery of Aaste for A&ic& t&ere are feA ot&er recyclin alternati9es# !&e tec&nolo ical solutions and possibilities of use of bio as &a9e been studied for %any decades# One of t&e possible uses of bio as and Aays of ac&ie9in reater independence fro% fuel producers is as en ine fuel# One of t&e leaders in t&is field in Estonia is t&e City of !artu5 A&ic& in co<operation Ait& ot&er or anisation5 cities and countries on t&e >altic Sea is de9elopin a pilot proCect of city buses operatin on bio as# Since 6arc& 2011 t&e first fi9e en9iron%entally friendly co%pressed as buses &a9e been operatin on !artuKs urban lines# "n future !artu City ,o9ern%ent is plannin to increase t&e proportion of as buses on t&ese lines# "nitially t&e buses Aill operate on natural as5 but t&is Aill be replaced Ait& bio as as soon as its production and purification for en ine fuel be ins in t&e area# At present t&ere is no operatin bio as plant in sout&ern Estonia5 alt&ou & t&ere are tAo on oin proCects to construct a bio as plant and a feasibility study is bein carried out re ardin t&e possibilities of use of landfill ases# "f t&ese t&ree proCects are i%ple%ented5 t&e bio as and bio%et&ane produced and collected Aould be sufficient to supply !artuKs buses5 but since t&ere are econo%ically %ore profitable alternati9es in t&e use of bio%et&ane5 production fro% t&ese plants cannot be counted on# >ased on t&is5 t&e !artu re ion could &a9e anot&er bio as production facility# !&e annual capacity of t&is plant s&ould co9er t&e fuel needs of public transport and s&ould also be sufficient to co9er t&e fuel needs of pri9ate 9e&icles and t&e fleets of co%panies related to transport in t&e city# !&ere are tAo different tec&nolo ical scenarios to be considered for t&e construction of t&e neA plant I Aet processin Ginitial in9est%ent P250;.5;00H and dry processin Ginitial in9est%ent P35$0050'0H# Re ardin t&e location of production5 t&e land at Rin tee 0$ s&ould be preferred#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

>ased on financial analysis it can be concluded t&at if Aet processin tec&nolo y is used GAit& a s%aller initial in9est%entH5 t&e pay<bacE period of t&e proCect5 based on t&e data used in t&e calculations5 Aill be ;#21 years# !&e pay<bacE period of t&e proCect A&en usin dry processin tec&nolo y is 9ery lon # !o %aEe t&e proCect profitable a loan s&ould be taEen out or t&e support of in9estors Aill be needed# !&e in9est%ent scope of t&e proCect GAit& eit&er tec&nolo ical alternati9eH Aill be co%pensated by t&e related positi9e en9iron%ental i%pact I reduced use of non<reneAable ener y sources and a reduction in reen&ouse as e%issions#

-sed literature and sources 1H Estonian "nstitute for Sustainable 7e9elop%ent 2010 JA study of t&e source %aterial for bio asK5 !allinn# 2H Estonian Far%ers Central -nion# 2002# >io as production and use# 6anual# !artu# 3H /riit 6iEelsaar 200.5 7e9elop%ent and econo%ic efficiency of bio as plants in Estonia# Article fro% t&e !euE + conference collection# 0H E))E O# 2010# !artu >io aas O "l%atsalu bio as and co< eneration plant# /re<assess%ent of strate ic e9aluation of en9iron%ental i%pact# $H 4ol%5 >ert# 2011# Analysis of t&e Adore "! proCect about co%plications in usin biofuel# 'H A&to OCa 2010 An o9er9ieA of t&e Estonian bio as sector1 present situation and de9elop%ent needs# S/"( proCect# ;H !uo%isto5 4anna# 200$# Biokaasun ja peltoenergian tuotannon ja kyt n ymprist vaikutukset # .H Sc&Dfer :#5 )e&to 6#5 !eye F# 200'# 7ry Anaerobic 7i estion of Or anic Residues On<Far% I A Feasibility Study#

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Feasibility and profitability study Construction of a bio as plant to produce fuel for !artu city buses

2H Viisi%aa5 6atti# 2011# /ri9ate letters on t&e subCect# 10H Vo el !#5 >arT 6#5 A&l&aus 6# 200.# 7ry<:et Fer%entation for >io as /roduction# 4eatB/oAer and !&er%al /&ysics# 11H &ttp1MMAAA#bal<lan enau#deM&ybrid<tec&nolo ie#p&p 12H &ttp1MMAAA#bio asre ions#or MdocMs&inin Ve?a%plesM12#pdf 13H &ttp1MMAAA#bio aseinspeisun #deMdoAnloadM200.V-6S"C4!V!ec&nolo ienVundVKostenVderV>i o asaufbereitun VundVEinspeisun VinVdasVErd asnetT#pdf

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