Energy%20from%20the%20biomass

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www.segi.com.pl
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Production of energy from the biomass - an option
for the sustainable development of industrial land
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Main idea of the project

• Creating an integral system of renewable energy
  production comprising 2 main elements
• Pellets production line (production capacity 1
  t/h)
• Plantation of an energy plant a hollyhock
  species Sida hermaphrodita as a source of biomass
  for pellets production
• within the industrial area

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Project developer

• Limited partnership founded for the purpose of
  the project
• SEGI-AT Sp. z o. o. (Ltd.)
• KGHM Polska S.A.
• Other investors

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Shareholders
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Location of the project

• South-western Poland
• community Rudna with a deteriorating agriculture
  and industrial areas
• High unemployment rate ca. 20
• Protective area around copper works and the
  flotation waste reservoir (ca. 14 km2)

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Plantation of Sida hermaphrodita (1)

• size 300 ha (ca. 25.000 plants per ha)
• very high annual yields (up to gt 20 t dry
  biomass/ha)
• low climate and soil requirements
• suitable for industrial land
• easy in cultivation, traditional methods
• low moisture content in the biomass (25)
• good parameters as a fuel (comparable with wood)

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Unique annual productivity - compared with Salix
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Plantation of Sida hermaphrodita (2)

• harvesting December March
• stored in the open air
• easily cut into pieces
• raw material for pellets production in form of
  chips
• cost of dry biomass production 25 EUR/t

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Sida hermaphrodita an energy plant
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Plantation of Sida hermaphroditaSpring Autumn
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Pelleting plant (1)

• Placed in the vicinity of the plantation within
  the existing infrastructure
• Production capacity 1 t/h
• Expected annual output 6000 t pellets
• Energy consumption 600 MWh/year
• Energy output from the produced pellets
• ca. 30.000 MWh/year (108.000 GJ/year)

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Pellets production line
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Pelleting plant (2)

• Consists of 3 main elements
• a dryer
• hammer mill
• pellet mill
• Raw material supply for pellets production
• In the initial stage waste wood from the wood
  industry
• In the long run (after 2-3 years operation)
  biomass of Sida hermaphrodita

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High density pellets environmentally friendly
solid bio-fuel, very comfortable in use for both
households and industrial plants
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Product characteristics

• diameter 6-8 mm
• length 2-3 cm
• density 1,15 kg/m3
• calorific value 18 MJ/kg
• low ash content (0,5 - 1)
• without binding agents
• high grade of homogeneity

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Financial details (1)

• Total cost of the investment
• 1 mln EUR over 2 years (2005-2006)
• Pellet production plant 650.000 EUR
• Plantation 350.000 EUR
• Initial capital of a new SEGI-KGHM partnership
  670.000 EUR
• Grant in frames of EU structural funds and PHARE
  Programme

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Financial details (2)

• Annual operating costs 330.000 EUR
• Annual revenues from pellets sales 480.000 EUR
  (80 EUR/t)
• Annual operating profit 150.000 EUR

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Prospects for the future

• EU target 12 energy from RES by 2010
• Polish Strategy for Development of Renewable
  Energy Sources sets following targets
• 7,5 energy from RES by 2010
• 14 energy from RES by 2020
• Biomass over 90 RES in Poland

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Comparison of different energy generation systems
in family houses
Type of fuel Pellets Gas Oil
Cost of 1 GJ of energy EUR 5 8 10
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Risks

• Grant for the project not awarded
• RE search for additional investors
• Incompetitiveness of bio-fuel on the Polish
  market
• RE focus on foreign markets, search for pellets
  consumers
• Lower than expected productivity of Sida
  hermaphrodita plantation
• RE supplementing Sida biomass with waste wood or
  other energy plants

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Future developments (1)

• Establishing a network of local pelleting plants
  (1-2 t/h) combined with a system of Sida
  hermaphrodita plantations
• Pellets for the individual use (family houses)
• Segi-KGHM partnership as a pilot project
• model system for the production of renewable
  energy from the biomass
• Searching for investors for projects based on a
  similar scenario

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Future developments (2)

• In the long run developing pellet market
• Modernisation of small district heating systems
  (power of several MW) as well as heating plants
  (200 kW - 1 MW) in industrial plants and public
  utilities (schools, hospitals etc.)
• Package offer heating plant for pellets
  continuous supply of fuel
• Looking for partners offering technologies of
  pellets combustion to apply in such heating
  plants

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Questions

• ???