Biomass Power Plants Heat Selected

In Osijek and Sisak, the construction of two cogeneration biomass power plants has been completed, in which HEP invested 35 million euros. These are the first power plants of this type in the HEP group, built by engineers Đuro Đaković and the Dutch company HoSt B.V. The plants, financed by a loan from the German bank KfW, will begin trial operations at the beginning of next year. – The produced electricity will be supplied to the electricity grid and reliable sources of technological steam will be ensured for industrial producers in Osijek. At the same time, it will enable a reduction in losses in the Sisak heating system – say HEP.

Insufficient for All The power plant in Sisak has a capacity to produce 19,300 MWh of electricity and 63,900 MWh of thermal energy, while the one in Osijek will produce 18,300 MWh of electricity and 65,800 MWh of thermal energy annually. Both will operate using forest biomass, which HEP secured by signing long-term contracts with Croatian Forests (HŠ). And it is not the only one. The demand for wood chips is so high that HŠ states there is not enough for everyone. Namely, about fifty companies have requested more than 940,000 tons of wood chips. – The total quantities of produced solid wood in the last five years are around 2.5 million cubic meters. From that quantity, raw materials must be secured for customers who produce wooden boards, wood-based panels, pellets, charcoal, briquettes, and short-cut and split firewood. Additionally, it is necessary to meet the local population’s needs for traditional firewood for heating and the needs for biomass for the production of thermal or electrical energy. Two and a half million cubic meters is not enough for all installed capacities in Croatia – says Ana Juričić Musa, spokesperson for Croatian Forests.

The Raw Material Question Experts deny HŠ’s spokesperson’s claims that there is a lack of raw materials for sustainable use in biomass cogeneration. They argue that when it comes to the collection and conversion of wood suitable for chipping, state forests are not managed efficiently. – It is not true that they do not have enough energy wood. It is true that there is no willingness in Croatian Forests to organize the collection of that type of wood after logging and the establishment of forest order – says Josip Dundović, president of the Croatian Biomass Association. Furthermore, if private forests, biomass from regular infrastructure works, and biomass grown for this purpose are taken into account, there is certainly enough raw material.

A Simple Renewable Source Dundović adds that the damage forests suffer due to natural factors, such as frost or winters with heavy snow, as well as forests in Gorski Kotar destroyed by bark beetles, can be turned into economic benefit. When it comes to this, he rightly questions why the management of Croatian Forests does not control these processes. Due to the disorganized biomass market, neither Croatian Forests nor the Croatian Energy Market Operator (HROTE) have approved requests for contract signing from everyone who requested it. Only those who have contracts operate successfully, and there are 11 such plants in Croatia, say the Energy Institute ‘Hrvoje Požar’. They operate at full capacity and receive incentives for electricity produced from biomass and will continue to do so for 12 or 14 years, as long as the contracts are valid. In the biomass business, planning ahead is essential, so it is not surprising that as many as 56 plants have signed contracts for electricity purchase in advance, even though they do not yet produce because they are under construction. The total power of electricity that is produced or will be produced based on signed contracts has filled the quota set for solid biomass power plants until 2020. – Every contract that ensures cash flow and profit for the investor for 12 or 14 years is attractive. Due to simpler technology, the first quotas were filled for wind and solar. Solid biomass is the next renewable energy source in terms of simplicity. When it comes to energy, 73 percent of electricity comes from unstable sources, namely water, wind, and sun, which increases the cost of managing the electricity grid. For example, last year HOPS spent 270 million kuna on ancillary services for balancing the grid. If we were to take this to the extreme, if all electricity came from stable sources, including biomass cogeneration, so much would be saved, and there would be no necessary price increases for the functioning of the system – says Biljana Kulišić, a researcher from the Energy Institute ‘Hrvoje Požar’.

Neglected Heating Among the first to venture into the biomass business is the company Lika Energo Eko based in Udbina. Established in 2009, it has the status of a privileged electricity producer. For years it was successfully led by Željko Lovrak, and last year he was replaced by Davor Zec as director. For the last two years, this small company, which employs five people, has been operating profitably. Last year it generated 900,000 kuna, and 2016 will also end in the black. – This year the profit will be around 1.3 million kuna, depending on weather conditions. Annually, we purchase between 14,000 and 17,000 tons of wood, mainly from Croatian Forests, because there are not many private forests in the area where we operate. We convert that material into chips ourselves and are satisfied with the contract we have with HŠ. The price of a ton of chips is around 240 kuna. Our only problem is the moisture content in the delivered wood material, for which the people from the Forests are not to blame, as we are one of the first biomass plants in Croatia, so such issues are resolved on the go – says Davor Zec, director of Lika Energo Eko. They have no problems with electricity purchase, but they had nowhere to sell thermal energy, so all the heat produced by Lika Energo was redirected to the parent company Moderator d.o.o. (Lika Energo is a subsidiary). This is a company that employs 42 workers and produces and exports pellets. – We fully utilize all thermal energy for the production of firewood assortments and pellets, and this year we may have to seek additional sources – adds Zec. Due to income from electricity, our wood processing industry is more competitive, and redirecting thermal energy into production diversifies income and reduces operating costs. A similar concept can be applied in the food processing industry. The possibilities are indeed vast.

Finns on the Offensive FinPro is a trade organization that brings together more than three hundred professionals working in 36 trade centers in 31 countries around the world and six offices in Finland. Their primary goal is to promote Finnish small and medium-sized enterprises, and in 40 specialized programs, they cover many Finnish companies engaged in waste and bioenergy. – I manage the FinPro program in which about 40 companies participate that offer technological solutions for converting energy from biomass. This market in Croatia, as well as efficient waste management, is very interesting to us – says Saku Luksia, head of the bioenergy and waste management program at FinPro. They presented what they offer and the opportunities they open at a recently held conference in Zagreb. Finnish companies Valmet, Ariterm, KPA Unicon, Molok, Miksei Mikkeli, and Finnvera are looking for Croatian companies that deal with the conversion of various types of raw materials into energy. – Finland has a long tradition of utilizing renewable energy sources. For decades, waste and by-products of the forestry industry have been successfully directed into energy production. Additionally, in recent years, energy production, rather than waste disposal in landfills, has been the main method of waste management in our country. Since the beginning of 2016, the disposal of organic waste in landfills has been completely banned, which has further increased the quantities that are recycled or converted into energy. In Finland, as much as 40 percent of the total energy produced comes from renewable energy sources – explains Luksia. The goal of the European Union is to produce 20 percent of energy from renewable sources by 2020. Croatia has the potential to quickly exceed those capacities many times over, believe the Finns.