place of investment Slovakia - City of Hriňová
installed capacity (kw/mw) 1,9 MWth
project cost (gross, in euro) EUR 524 976
project type Communal
number of users of generated energy Approx. 3 000 residents
type of energy resource replaced Natural gas, coal
start of operation May 2006
financial sources EU Structural Funds and state budget (65%)
ownership structure Heating Management of Hriňová city Ltd.
(Hriňovská energetická s. r. o.)
investor Hriňovská energetická s. r. o.
(Energy management of Hriňová city Ltd.)
THE PROJECT

The INTECH Slovakia Ltd. is a company that provides complex services in the field of energy efficiency. It acquired the Heating Management of Hriňová City (Ltd.) with the aim to play a more crucial role in the field of municipal energetics. Consequently, after the acquisition the name of the company was changed to Hriňovská energetická, s. r. o. (Energy Management of Hriňová City Ltd.).

The customers in Hriňová (inhabitants and enterprises) were previously supplied by conventional energy sources (natural gas and lignite) in the capacity of 70 000 GJ annually. After the acquisition, the modernization of the energy generation source (shift to biomass), the heat exchanging stations and the heat conveyances has begun. One of the main goals was to prevent the increase of heating prices in a period of gradually rising prices of energy sources (especially fossil fuels).

TECHNOLOGY

The first phase of the project was finished in May 2006, when the biomass firing boiler VESKO-B with installed output 1.9 MWth (at fuel with moisture content of 50% and calorific value 8MJ / kg) was put into operation. The current overall heat generation amounts to 60 000 GJ, 38 000 GJ of which is produced from biomass. The lifetime of installed technology is approx. 15-20 years.

The VESKO-B boilers are specially made in order to burn wood waste (involving bark, trimmings, saw dust, wood chips, straw), which it is not possible to use in an industrial area. Due to the special impermeability of the transport paths of the boiler, other waste also can be transported inside (brick, rock or other similar waste) without damaging or stopping the boiler and non-separated waste can be burned as well. The parameters of the boiler are designed for a moisture content of 50%, but also the fuel with a moisture content of 70% can be fired in this type of boiler. In winter time, the fuel transported to the boiler is frozen and covered with snow. The fuel is subsequently transferred to a firing grid through a heated tunnel and fuel is therefore being pre-dried.

The annual fuel consumption is 6 000 tons. 80% of this is provided to the central heating system in Hriňová for the supply of 1 000 dwellings, a school and some premises. The remaining 20% is provided to Hriňová machinery plant (mainly in winter).

Regarding the fuel supply, Intech Slovakia Ltd. established its own division “BIOFUELS” that disposes of complex technology for the processing of biomass for energy use (wood-chipping machine, tractor, other vehicles, saws) and insures all their demands related to biomass. So the whole cycle is under the company's control.

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ECONOMIC ASPECTS

With regards to the financing of the project, approximately 65% of total costs were covered by EU Structural Funds and the state budget. Hriňovská energetická Ltd's proposal was approved within the frame of Operational Programme Environmental Infrastructure (Measurement 2.2. - Improvement and development of infrastructure for climate protection) on September 6th 2005 in the total amount of
13 099 132.39 SKK (343 836 £, as of August 2, 2006, 1 £ = 38 097 SKK). The remaining 35% of total investment costs was covered from the company's own sources.

One quite positive aspect is that the Hriňovská energetická Ltd. has maintained keeping the lowest heat price for its customers in a wider vicinity. The biomass firing boiler has been in full operation only since the beginning of May 2006. Therefore, it is highly likely that the price of heat will further drop in 2007.

The payback period is approximately 2.8 years, but this datum is not so relevant for the operator, since there is regulation of heat price valid in the sector of heat-power engineering. From the standpoint of the operator it is more important that the cash-flow of the project was positive from the beginning of this project.

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SOCIAL EFFECTS

Representatives of Hriňovská energetická Ltd. gave public presentations before the start of the project as well as during the implementation phase. In the preparation stages a special open day was organised as well. The company regularly reports on its project by means of its bulletin about energy efficiency, “BLESK (FLASH)”, on the official web page and in local and regional electronic and printed media.

No workplaces have been created directly in the boiler room, because the installed boiler VESKO-B is a modern automatic device that has not boosted demand for servicing and maintenance. But new jobs were created indirectly in the division „BIOFUELS” with connection to harvesting, biomass processing, transport etc.

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ENVIROMENTAL EFFECTS

The implementation of the new technology based on biomass use will have a positive impact on air quality. The content of SO2 in the atmosphere will decrease by 38% and the content of CO2 by 52% in comparison to previous levels. Globally, the emission of greenhouse gases and pollutants will decrease by 48%. In relation to fuels, the consumption of natural gas will be cut by 48% and consumption of coal and lignite by 43% annually.

Approximately 2 200 tons of CO2 can be saved compared to the previous position.

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DIFFICULTIES, PROBLEMS

No serious problems have been noted during the project implementation. But from an overall view one of the main nationwide barriers is the very low level of environmental and economic expertise. Fortunately this was not a problem in case of the biomass project in Hriňová.

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FOLLOW UP

The next phase of the project should be aimed at installing the second biomass firing boiler with installed capacity of 2-3 MW in order to ensure that - instead of natural gas - heat in the central heating system will be produced by combustion of biomass only. Also the implementation of cogeneration units TEDOM in order to primarily cover its own electricity consumption as well as consumption of its close customers should be expected in that phase. This is a long-term process. From the short-term standpoint, further measurements will be oriented towards increasing the efficiency of the heat distribution and the decrease of distributional losses.

The heat price in Hriňová is one of the lowest in Slovakia at present and the goal of all mentioned measures is to keep this trend and build a modern and efficient energy system in the city of Hriňová.

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FURTHER INFORMATION

Hriňovská energetická s. r. o. (Ltd.)
Obchodná kancelária (Business agency) STRED Partizánska
STRED Partizánska cesta 1465
962 05 Hriňová
Slovakia

Tel: +421 45 54 98 625
Fax: +421 45 54 98 626
E-mail: stred@intechenergo.sk - dudak@intechenergo.sk
Web: www.intechenergo.sk

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Examples to Follow - Successful and Sustainable Energy Investments in the Central-Eastern and South-Eastern European Region - Energia Klub
2008