sustainable mobilisation of local wood biomass resources BiomassTradeCentreII

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Development of...
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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Development of biomass trade and logistics centres for sustainable mobilisation of local wood biomass resources – BiomassTradeCentreII Publishable report

Ljubljana, June 2014

www.biomasstradecentreII.eu

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Content

1.

2.

Introduction .......................................................................................................................................... 1 1.1.

Project partnership ....................................................................................................................... 1

1.2.

The main objectives of the project ............................................................................................... 2

1.3.

Results and lessons learned .......................................................................................................... 3

1.4.

Success stories .............................................................................................................................. 4

1.5.

Introduction to this report ............................................................................................................ 4

Slovenia (Partner 1: Slovenian forestry institute) ................................................................................. 5 2.1.

Wood biomass situation in Slovenia ............................................................................................. 5

2.2.

Wood biomass production............................................................................................................ 7

2.3.

Establishment of BLTCs ................................................................................................................. 9

2.4.

Energy contracting ...................................................................................................................... 13

2.5.

QA/QC system ............................................................................................................................. 14

2.6.

Lessons learnt and special achievements ................................................................................... 17

3. Austria (Partner 2: Styrian Chamber of Agriculture and Forestry and Partner 7: Styrian Forest Owners Association) ................................................................................................................................... 19

4.

3.1.

Wood biomass situation in Austria/Styria .................................................................................. 19

3.2.

Wood biomass production.......................................................................................................... 23

3.3.

Establishment of BLTC - engagement of target groups .............................................................. 25

3.4.

Wood Energy contracting ........................................................................................................... 29

3.5.

QA/QC system ............................................................................................................................. 33

3.6.

Lessons learnt and special achievements ................................................................................... 36

3.7.

Special achievements .................................................................................................................. 38

Italy (Partner 3: ................................................................................................................................... 39 4.1.

Wood biomass situation in the country / region ........................................................................ 39

4.2.

Wood biomass production.......................................................................................................... 44

4.3.

Establishment of BLTC - engagement of target groups .............................................................. 48

4.4.

Energy contracting ...................................................................................................................... 54

4.5. QA/QC system – State-of-the-art, good practice examples, biomass laboratories, experiences with implementation of QA/QC .............................................................................................................. 54 4.6.

Lessons learnt and special achievements ................................................................................... 56

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 5.

6.

7.

8.

Croatia (Partner4: North-West Croatia Regional Energy Agency) ...................................................... 58 5.1.

Wood biomass situation ............................................................................................................. 58

5.2.

Wood biomass production.......................................................................................................... 62

5.3.

Establishment of BLTC................................................................................................................. 63

5.4.

Energy contracting ...................................................................................................................... 65

5.5.

QA/QC system ............................................................................................................................. 66

5.6.

Lessons learnt and special achievements ................................................................................... 68

Spain (Partner 6: Spanish Bioenergy Association) .............................................................................. 69 6.1.

Wood biomass situation in Spain................................................................................................ 69

6.2.

Wood biomass production and engagement of target groups .................................................. 72

6.3.

Establishment of BLTC................................................................................................................. 74

6.4.

Energy contracting ...................................................................................................................... 77

6.5.

QA/QC system for wood fuel producers ..................................................................................... 78

6.6.

Lessons learnt and special achievements ................................................................................... 79

Region of Catalonia, Spain (Partner 5: Forest Sciences Center of Catalonia) ..................................... 80 7.1.

Wood biomass situation in Catalonia ......................................................................................... 80

7.2.

Wood biomass production.......................................................................................................... 82

7.3.

Establishment of BLTC................................................................................................................. 88

7.4.

Energy contracting ...................................................................................................................... 94

7.5.

QA/QC system ............................................................................................................................. 96

7.6.

Lessons learnt and special achievements ................................................................................... 98

Greece (Partner 8: Centre for Renewable Energy Sources and Saving) ........................................... 101 8.1.

Wood biomass situation ........................................................................................................... 101

8.2.

Wood biomass production........................................................................................................ 105

8.3.

Establishment of BLTC............................................................................................................... 106

8.4.

Energy contracting .................................................................................................................... 107

8.5. QA/QC system – State-of-the-art, good practice examples, biomass laboratories, experiences with implementation of QA/QC ............................................................................................................ 108 8.6.

Lessons learnt and special achievements ................................................................................. 118

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 9.

Romania (Partner 9: S.C. I.C.P.E. BISTRITA S.A.) ............................................................................... 120 9.1.

Wood biomass situation in the country / region ...................................................................... 120

9.2.

Wood biomass production........................................................................................................ 124

9.3.

Establishment of BLTC............................................................................................................... 133

9.4.

Energy contracting – (engagement of target groups -report from events) .............................. 143

9.5. QA/QC system – State-of-the-art, good practice examples, biomass laboratories, experiences with implementation of QA/QC ............................................................................................................ 145 9.6. 10.

Lessons learnt and special achievements ................................................................................. 147 Ireland (Partner 10: Irish Bioenergy Association) ......................................................................... 149

10.1.

Wood biomass in Ireland .......................................................................................................... 149

10.2.

Wood biomass market .............................................................................................................. 150

10.3.

Promotion of wood biomass production .................................................................................. 151

10.4.

Establishment of biomass trade centres................................................................................... 155

10.5.

Energy Contracting Promotion ................................................................................................. 157

10.6.

QUALITY ASSURANCE OF WOOD FUELS.................................................................................... 159

10.7.

LEGACY OF THE BTC2 PROJECT IN IRELAND.............................................................................. 159

11.

Germany (Partner 11: Technische Universität München) ............................................................ 161

11.1.

Wood biomass situation ........................................................................................................... 161

11.2.

Wood biomass production........................................................................................................ 166

11.3.

Establishment of BLTC............................................................................................................... 169

11.4.

Energy contracting .................................................................................................................... 171

11.5.

QA/QC system ........................................................................................................................... 174

11.6.

Lessons learnt and special achievements ................................................................................. 175

12.

List of deliverables ........................................................................................................................ 177

13.

Authors of this report: .................................................................................................................. 179

1. Introduction The BiomassTradeCentreII project aimed at increasing the production and the use of energy from wood biomass by organising motivation events that engaged identified target groups to invest in biomass business and biomass logistic and trade centres (BLTC) in 9 EU countries (Austria, Croatia, Germany, Greece, Ireland, Italy, Romania, Slovenia and Spain), by presenting clear, integrated and market orientated information to potential investors: farmers and forest owners, forest entrepreneurs, wood energy contractors and other stakeholders regarding business opportunities to produce and sell energy products and services to the market. It also fostered wood energy contracting between biomass providers and potential users. The above motioned aims of the BiomassTradeCentreII project were reached with promotion of modern technologies and techniques along biomass production chain and the consequent involvement of stakeholders, but also with promotion of wood fuel quality criteria among producers and users. Our goal was to engage right people, to provide them the necessity information and to help them to enter the market.

1.1. Project partnership The BiomassTradeCentreII project was a collaboration between 11 European Partners across 9 countries, running from May 2011 to April 2014. The aim of partnership was knowledge transfer from more to less advanced countries but also capacity building.

Figure 1: Countries involved in the project

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Project Countries and Partners

SFI - Slovenian Forestry Institute (Coordinator) (WP 1/5/7 Leader) Lk Stmk - Styrian Chamber of Agriculture and Forestry (WP 4 Leader) WVB-STMK - Waldverband Steiermark GmbH Styrian Forest Owners Association (WP 2 AIEL - Italian Agriforestry Energy Association (WP 3 Leader)

REGEA - North-West Croatia Regional Energy Agency CTFC - Forest Sciences Center of Catalonia

CRES - Centre for Renewable Energy Sources and Saving ICPE - S.C. I.C.P.E. BISTRITA S.A. IrBEA - Irish Bioenergy Association TUM - Technische Universität München

1.2. The main objectives of the project The main objectives of the project were: 1. To boost investments in biomass production by demonstrating modern technologies along wood biomass production chains to forest owners, farmers, forest entrepreneurs, members of machinery rings, cooperatives of farmers and SMEs in rural areas in sustainable way through implementation of trainings, study tours, workshops. 2. To support establishment of new regional Biomass Logistics and Trade Centres (BLTC) and to promote existing BLTCs by promotion of their activities. 3. To promote energy contracting with study tours, promotion material and workshops where suppliers and potential users were able to meet and discuss. Special emphasis was given to public bodies, local communities and policy makers. 4. To promote quality in biomass use by building a simplified quality assurance and quality control (QA/QC) system for small wood fuel producers and to create a proposals for wood biomass labelling to create awareness about the quality and efficiency of local or regional biomass pathway (sustainability). 2

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 5. To improve and build up a network of qualified wood biomass laboratories among participating countries. 6. To support capacity building among participating countries and institutions 7. To support development of common European biomass market and development of strong biobased industry and energy supply trough market orientated actions for different target groups along biomass production chains. 8. To contribute towards increased use of renewable energy sources and consequently to guarantee more secure supply of energy with mobilisation of wood biomass from private forests trough promotion of modern and sustainable wood biomass production chains. 9. To contribute towards sustainable use of renewable sources with promotion of sustainability criteria and boosting concrete implementation on the biomass market of EN/CEN technical specifications. 10. To contribute towards job creation, especially in rural areas, and consequently encouragement of local and regional development, with concrete market oriented actions for SME’s, forest entrepreneurs/companies and forest owners and farmers. 11. To encourage research and development in the field of renewable energy technologies with strong collaboration of research institutions and development organisation with other stakeholders and key actors. The project will help to build a network of organisations around EU with capacity to develop further wood biomass sector during the project duration and beyond.

1.3. Results and lessons learned Through the whole project period, the main activities of partners were directed towards addressing and engaging stakeholders. To support such activities, training for partners were organized, different technical and more general publications were prepared and translated to different languages. All this activities are reflected in numerous events organized, high number of participants and hits on internet page. Achieved results of project are: 1. Organization of 397 events, we reached 16.579 people in 9 countries 2. More than 2.100 addresses of service providers (wood chip, firewood, pellet producers, and forest companies but also sawmills) are available in internet catalogue (biomass producers, forest companies – details available on internet) on: http://www.biomasstradecentre2.eu/wood-biomass-production/service-providers/ 3. 14 new biomass trade and logistic centres are already build 40 new BLTC in progress – with technical support of this project, more than 32 prefeasibility studies for new investments were prepared and presented to possible investors, 4. Trough different activities 93 investment projects were supported (all project are presented in IEE monitoring), total estimated investments in this supported projects are around 20 million €, estimated amount of wood biomass that will be mobilized trough this project is more than 1.000.000 t. 5. Energy contracting booklet printed and disseminated (in 9 languages). 6. A network of 23 wood biomass laboratories was set up. 7. A system for QA/QC for small biomass producers and BLTC was tested in 26 companies. 8. Booklet on CEN standards and QA/QC was printed and disseminated (in 9 languages) 3

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 9. More than 70 national or international articles were prepared, 3.200 e-mail contacts were collected within national dissemination activates, project partners participated and disseminated project results at 40 different related events (e.g. bioenergy fairs), 10. More than 1.600.000 hits on project web page www.biomasstradecentre2.eu were recorded. 11. Strong consortium – new ideas for BIOMASSTRADECENTRES III project.

1.4. Success stories Big success story of our project are all the actions carried out during project lifetime. In different ways we initiated several activities: 1. Establishment of new biomass businesses, 2. Creation of new Biomass trade centres, 3. Starting with energy contracting – even if implementation of such model was a big issue in some countries, 4. Establishing QA/QC system for wood fuels that can be easily implemented by smaller biomass / wood fuel producers, 5. Through our activities we directly involved more than 16.500 people. Trough internet page another group of stakeholders was reached, consequently we contributed a significant part to better knowledge on wood biomass in participating countries 6. It is difficult to estimate the total value of investments and activities that started but we believe that the impact will be seen through next years.

1.5. Introduction to this report Implementation and development, achievements and lessons learnt varied considerably among countries and project partners. The project results were related with experiences of the involved project partners but also with current market situation and development of the biomass sector in particular country. In any case, social and cultural differences between involved countries should also be considered when comparing them between each other. As a project coordinator we think that partners have the right and the obligation to tell “their story about BIOMASSTRADECENTRE II project”. Therefore each partner prepared a short description about their view, how BIOMASSTRADECENTRE II project influenced the sector in their countries.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

2. Slovenia (Partner 1: Slovenian forestry institute) 2.1. Wood biomass situation in Slovenia Slovenia is one of the most forested countries in Europe. Forests cover 1 185 169 ha, which is 58,5% of the country. Most of the Slovenian forests are beech, fir-beech, and beech-oak with relatively high capacity. The growing stock is approximately 330 million m3. Annual increment is about 8,1 million m3, and annual cut was between 3,0 and 3,7 million m3. This leads to conclusion that potential of forests in Slovenia is not used to the maximum. According to the Directive 2009/28/EC Slovenia should reach at least 25% share of renewable sources in gross final consumption. The share of RES in final overall energy consumption in 2012 was 20,2%. It is expected that by 2020, gross final energy consumption for heating and cooling, electricity and transport will fall in the reference strategy by 3,2% relative to the level of 2008, by 2020. Achieving lower final energy consumption in transport is vital to meeting the targets, since 10% of the fuel used in transport is from RES, and with an increase in the share of transport in gross final consumption, Slovenia is way off the target of 25%. (SURS, 2012) The use of renewable energy in Slovenia is increasing. Traditional sources, solid biomass and hydro energy have share of 87 % in all RES. The most of RES (59 %) are consumed in heating purposes, whereas the rest is used for electricity production. Biomass is mainly used for the production of heat (95 %), especially in households. In 2009, more than 300 000 households used wood for heating, and number is still growing. Traditionally, firewood is mostly used for heating, but in recent years use of pellets and briquettes is increasing. Data from SORS (Statistical Office of the Republic of Slovenia) for 2011 show that households consume 1 137 000 tons of wood fuels with a predominance of wood logs (1 100 000 tons). According to National renewable energy action plan (NREAP) supply with domestic biomass will increase among the years. The amount of wood biomass is set to 1 302 000 tons for year 2015 and to 1 338 000 tons for 2020 (Beurskens /Hekkenberg, 2011). According to data from new forest management plans it can be concluded that the theoretical potential of wood biomass from forests in next year will reach 1,4 million m3. Database of Slovenian Forest Institute numbers about 86 wood chippers all around Slovenia (Picture1). Those are mainly middle size chippers (capacity from 5 to 50 loose m/hour), with estimated production of more than 750 000 loose m of wood chips. Number of wood chippers in Slovenia is probably higher, but their production is negligible and they are mainly used for production of wood fuel for domestic use. Production of wood pellets and briquettes is relatively constant from year 2006, with the annual production of 55 000 to 60 000 t.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Figure 2: Wood chippers in Slovenia, Source: Slovenian Forest Institute, 2014

One of the potentials for exploitation of wood biomass is also plantations of fast-growing trees, such as poplars and willows. These plantations could represent an important and cheap source of wood biomass for large users such as district heating systems and large power plants. There are two plantations in Slovenia of fast-growing trees, both founded in 2009 (Velenje and Trbovlje), with a total area of 6 ha. Plantation in Velenje shows good production of wood biomass, while growth of plantation in Trbovlje is worse. Plantations of fast-growing trees in Slovenia are not very important, because there is a lot of wood suitable for production of wood biomass, and there is not enough suitable land for the establishment of these plantations. Other source of wood biomass is wood from shrubs, orchards and vineyards, renovations and maintenance of parks and green areas, cleaning of pastures and other agricultural or urban land. Potential of wood biomass from areas outside the forest needs to be evaluated. According to the study done by Slovenian forest service, the potential of wood biomass outside the forest is 270 000 m3 per year. The main problems for biomass utilization are the conventional systems with out-of-date technologies and relatively low efficiency. Production of wood chips from forest residues is not a common practice. The main barrier for using forest residues are economics and harvesting technology. In addition, 74% of Slovenian forests are privately owned. Private properties are characterized by high fragmentation and small size. The average private property is approximately 2.5 ha, and is further divided into several separate plots. Furthermore, private forest estates are subdivided. According to recent data, in Slovenia there is 313 000 (with co-owners even 461 000) forest owners. The waist majority of small forest owners 6

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII use wood only to cover their own need for wood biomass (for heating), and do not have any interest to enter the wood market. The actual use of wood fuel from forests is mainly dependent of forest openness for machinery and rational removal of wood. The average density of forest roads in state forests is 12,8 m/ha and in private 10,3m/ha. Construction of skid trails in recent years has reached the planned goals, what cannot be said for the construction of forest roads. This is common for private forests, where the owners do not have sufficient funds for the construction (forest road 40-80 €/m; skid trail: 7-21 €/m).

2.2. Wood biomass production In order to promote and foster the investments into new biomass production businesses, Slovenian Forestry Institute organized several events such as workshops, demonstration events, training days and match-making events. Participant at the events were mainly farmers, small entrepreneurs from rural areas, forest associations or existing forest companies and in some case also local authorities. Different topics on sustainable wood fuel production/biomass business were presented; from practical guidelines related with wood fuel production and economical aspects to existing good practice examples in Slovenia and abroad. The emphases was on innovative wood biomass production and marketing methods (e.g. short rotation plantation, biomass trade centers, energy contracting etc.) At the organized workshops innovative ways of wood fuel production and use were presented. Differences in production and handling of woof fuel types were discussed (e.g. fire wood, wood chips and pellets). The participants head the possibility to discuss with an expert about main issues regarding the production, manipulation and finally marketing/selling of wood fuels. The workshops were mainly organized within fairs with agricultural and forestry topics to reach target groups.

Figure 3: Workshop in Komenda.

Important part were also the demonstration events were the stakeholders head the opportunity to observe the state-of-the art technology for firewood and wood chips production (e.g. firewood processors and wood chippers) in operation. Besides, modern heating devices were usually also presented at such evens. Demonstration events were usually realized in cooperation with Machinery rings and the Chamber of Agriculture and Forestry of Slovenia. Beside the demonstration of machinery for wood fuel production an important point were also safety instructions, not only at the wood fuel production stage but also in forests. 7

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Figure 4: Demonstration event in Komenda

Successful was also the organization of the so called “match-making” events. The main idea of such events was to bring together forest owners, wood fuel producers and sellers of forest machinery, wood fuel production machinery etc. to start with cooperation. Usually all the target groups were invited to such events, where they head the opportunity to present themselves and their activities.

Figure 5: Match-making event in Ljubljana

In order to maintain and further encourage the cooperation between different actors of the wood fuel production chain, SFI prepared a catalogue of wood fuel producers (firewood, wood chips but also pellet producers) and forestry companies. The catalogue is available in form of a handy booklet or as a web search program and contains the main information about producers with their contact data.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Figure 6: Catalogue of wood fuel producers as booklet and internet search program.

2.3. Establishment of BLTCs A substantial effort was put into the promotion of investments into Biomass Trade and Logistic Centres (BLTCs) and to help further development of existing ones. The concept of BLTCs turned out to be very successful in the neighbouring Austria (but also in Italy and Germany), especially in the region of Styria, where a width network of BLTCs was established, based on the cooperation between farmers and forest owners. Therefore study tours were organized for Slovenian stakeholders (but also for participants from other countries involved in the project) to see a successful BLTC in operation. To promote and support the establishment of BLTCs workshops, open days and one-to-one meetings were organized. Documents from the previous Biomass trade Centre project were used, such as “Biomass trade centre’s generic guidelines” were also used to help new interests with establishment of BLTCs. SFI organized four workshops, two study tours, two open days and 10 one-to-one meetings. Besides four feasibility studies were prepared for new investments into BLTCs. At the workshops SFI presented the potentials of wood biomass in Slovenian forests and methods/approaches for production, sale and use of wood fuels (wood biomass). However the major part was the presentation of main issues related with successful realization of the Biomass trade centres, whereby economical, technologically but also sociological aspects were considered. As a rule, companies or entrepreneurs already involved in the biomass production and trade business were asked to present their experiences, concerns and issues. Consequently a dynamic discussion evolved among experts, experienced entrepreneurs ant those who considered to start with a new business. Invited were usually forest owners/associations, farmers, machinery ring members, local communities but also general public.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII The feedbacks from participants at such events were always positive. The pointed out issues with establishment of new BLTCs were always related to excessive bureaucracy in Slovenia; e.g. entrepreneurs are usually faced with long waiting periods to acquire construction permissions and other documentation but also high prices of estates.

Figure 7: Workshop with the title “Production, marketing and use of wood fuels” organized in Novo mesto.

Study tours were organized with the aim to present Slovenian stakeholders, good practice examples in Austria. The first study tour was organized in October 12th 2011 to Austrfoma fair, where the participants head the possibility to see new forestry mechanization and equipment and also an Austrofoma bioenergy village. The second study tour to Graz was organized by the Austrian partner (LkStmk) between 8th to 9th April 2013. Fourteen participants from Slovenia attended to these event. The feedback from participants was positive, since some were encouraged to start with new BLTC businesses.

Figure 8: Study tour to Graz

The aim of the one-to-one meetings was to enable potential investors to overcome technical, economical or legal barriers. They were organized between experts from Slovenian forestry Institute and other research institutes and potential investors or other motivated tend users. These meetings were especially appreciated since, more and more request to organize them were recorded; these fact also 10

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII indicates that new ideas and initiatives for biomass trade centres are rising in Slovenia. Therefore the Slovenian forestry institute will continue to organize such events in the future.

Open days were organized at already established biomass trade centers in Slovenia in order to promote good practice examples. Such events were organized especially for general public to promote the use of wood fuels ant to foster the local consumption. Beside other interested groups, forest owners/associations, potential investors, farmers and local authorities were also invited. Most of the BLTCs in Slovenia organize at least once per year an open day for their customers and general public in order to attract their attention, and are in general well attended.

Figure 9: Biomass trade centre Pohorje-Kozjak open day in Selnica ob Dravi.

Slovenian Forestry Institute prepared four feasibility studies within the BLTCII project. The companies were selected based on fair and transparent criteria; entrepreneurs who attended to organized events and showed serious interest on establishment of new biomass and trade centres were in advantage. Selected were the Pohorje – Kozjak forest owner association who planned to establish Biomass trade centre Pohorje-Kozjak, Matic Vidic who plans to establish BLTC Novo mesto, Martin Demšar who plans to establish BLTC in the north-west region of Slovenia and the company GO-LES d.o.o. with the intention to build up a BLTC in Vipvava.

BLTC Pohorje – Kozjak BLTC Pohorje-Kozjak started with operation in September 2013. Around 100 visitors attended to the opening day. The main goal of the BLTC is local supply with wood fuels like firewood and wood chips but 11

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII also sawn wood at the wider Maribor area. The project started the Association of Forest Owners Pohorje – Kozjak z.o.o, wich has around 150 members, under the supervision of Rupert Rauh. The BLTC is located in the municipality Selnica ob Dravi, 15 km away from Maribor, the second largest city in Slovenia. Three distant warehouses (with capacity of 1000 nm3) provide the BLTC with wood chips. Firewood is delivered by the members of association.

BLTC Novo mesto The location of planned biomass trade centre is in West part of Novo mesto, approximately 1 km from the city centre. The owner of the land is the municipality Novo mesto, however the company Ekovizija (under the supervision of Matic Vidic) is managing the land. Since the entrepreneur already owns a firewood processor and produces firewood, they started with firewood production at the end of 2013. They also plan to invest into a wood chipper. The raw material for firewood and woodchips will be provided from local environment, from local forest owners. The planned capacity of both firewood and wood chips will be around 1500 prm.

Figure 10: Biomass trade centre Novo mesto currently producing only firewood.

BLTC Martin Demšar The BLTC will start with operation in the second part of 2014, since they are still struggling with collection with all necessity documentation and permissions. The investor (Matic Demšar) would like to establish a BLTC mainly for firewood and wood chips. The facility is located at the regional road Železniki-Podbrdo in village Jesenovec. The current infrastructure enables storage of raw material (round wood) and the production of wood chips. Predicted are, the construction of new warehouse for wood chip storage.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Figure 11: Biomass trade centre Martin Demšar will start with operation in second part of 2014.

BLTC Vipava BLTC Vipva obtained all the necessary documentation and will start with production in middle of 2014. The investors are Ivan Rehar and Peter Rehar who established the company GO-LES d.o.o. The emphases of the BLTC will be the production, storage and marketing of quality firewood and wood chips. The BLTC is located near Vipvava. At the planed location, there is already a facility with a floor area of 230 m2, which will be adopted into a storage house. The raw material will be delivered to the BLTC from the Vipava valley by local forest owners.

Figure 12: Biomass trade centre Vipava will start with operation in the middle of 2014.

2.4. Energy contracting Energy contracting is a new innovative approach to sell heat produced from biomass to one or more users (as local or district heating). The main goal of the project was to encouraging potential investors to implement energy contracting. Since the approach is relatively new and mostly unknown among the general public and also among stakeholders the consortium organised several activities and initiatives.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII In Austria the model of energy contracting is known already a longer time and therefore more good practice examples are available. The Austrian partner (LkStmk) prepared a document with the title “Energy contracting – Business model for energy services” which was dedicated mainly to the professional public. Later a booklet was prepared with the title “Energy contracting – Buy heat not fuel” directed to the broader / general public in order to present the model to the potential end users. The booklet is divided into two parts; the first part describes (in a most possible simple manner) the general idea of the model and the different versions and implementations, the second part presents good practice example. The booklet was translated into the Slovenian language and disseminated at different events. To increase averseness about the energy contracting model, Slovenian forestry institute published several articles in national newspapers and journals. Few initiatives were consequently observed to start with activates related to energy contracting. However to reach a broader public the model should be adopted to conditions in Slovenia.

Figure 13: Booklet “Energy contracting – Buy heat not fuel” translated into Slovenian language.

2.5. QA/QC system Important part of the Biomass Trade Centre II project was the promotion of wood fuel quality standards. Our goal was to increase the averseness of wood fuel producers about wood fuel quality control and quality assurance on one site, and on the other site the awareness of consumers about the importance of these issue. At the beginning of the project Slovenian Forestry Institute prepared a state-of-the-art report regarding quality certification schemes and labelling in English and Slovenian language. The report contained main 14

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII information about forest management chain of custody certification, national and international labelling schemes for wood fuels and a list of all relevant standards. In addition good practice examples of quality control and quality assurance system were described and presented at events. The pellet producer GGP, Gozdno Gospodarstvo Postojna d.o.o. successfully implemented the Italian labelling system “Pellet gold” and afterwards the “EN plus (A2)” certificate. The second was the Snežnik d.d. company who implemented the FSC certificate. The descriptions of good practice examples contain main data about the company, their main activities, short description of the QA/QC system implementation, major issues during the implementation phases and benefits after the successful implementation of the system. Slovenian Forestry Institute prepared a quality control and quality assurance (QA/QC) system for small biomass producers and suppliers based on EU CEN standards. The preparation of the document was based on several complains from small scale wood fuel producers that it is not possible, practical or realistic for them to implement a full-scale QA/QC system. This is due to the high cost barrier of laboratory testing and auditing. A more realistic approach was therefore proposed for producers who sell less than 1,000 tonne/year. Herewith it is possible to ensure that the most important parameters are properly tested and declared, besides the system can be expanded and improved to meet further requirements. The purpose of the system is also to increase consumer confidence so that producers can demonstrate to end users that a specified quality was/is reached through controlling the processes in the supply chain. The manual is focused on solid wood biofuels from woody biomass origin and can be used by all operators/customers in the supply chain within the scope of standard EN 15234. The document was translated into English language and afterwards in other languages of the project partners. Small scale producers who participated on different BLTCII events and expressed issues with assurance of the declared wood fuel quality were selected to implement the proposed QA/QC system. After the selection of a company/entrepreneur a meeting took place where the main quality issues were discussed. Afterwards the production steps/phases were recorded and critical control points were selected. Based on the findings of the meeting a document was prepared which was in basic an adaptation of QA/QC system; beside the document contained a description of the quality problem and the suggested solution either to improve or to ensure the quality. The document also contained a check list at critical control points (e.g. source or origin of raw material, storage conditions of raw material, production parameters etc.). The quality of the specific wood fuel was also regularly controlled in the laboratory for wood biomass of the Slovenian Forestry Institute in order to monitor the efficiency of the QA/QC system and to contribute to the quality assurance system. After the agreed period of time the company/entrepreneur head the possibility to decide whether they continue with the system or not.

15

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Figure 14: A meeting with the pellet producer Energija Narave d.o.o. to discuss the implementation of the QA/QC system.

In Slovenia two wood biomass laboratories were identified, one is located at the Slovenian Forestry Institute, within the Department for Forest Technique and Economics, and the other at the thermal power plant (Energetika Ljubljana enota TE-TOL) in Ljubljana. Both laboratories cooperated with each other in within the BLTCII project. In order to promote technical aspects of QA/QC system implementation a handbook with the title “Biomass Manual - Quality Assurance Systems and Quality Control Measures” was prepared by the Austrian partner and was then also translated into Slovenian language. The document describes in detail all aspects of QA/QC system implementation with step-by-step instruction. Austrian partner also prepared a booklet with the title “Quality Wood Fuels for Everyone” which was also translated into Slovenian language. The booklet contains explanations and advices how to deal with wood fuels and is directed mainly towards wood fuel users.

Figure 15: Booklet and the handbook about the QA/QC system translated into Slovenian language.

16

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Together with other partners Slovenian Forestry Institute prepared a template for collection of wood fuel prices. Prices of wood chips, firewood, pellets and briquettes were collected biannually (at the beginning and at the end of the heating season). At the SFI an internet questionnaire was prepared and distributed among companies and entrepreneurs already listed in the catalogue of wood fuel producers. Beside, each time a telephone survey was also performed, in order to include new companies. The analysis of the collected data was performed by SFI and a short report was prepared in English language. In common we prepared and published 6 short reports about wood fuel prices. The results were often presented also in local journals and newspapers.

2.6. Lessons learnt and special achievements Main lessons learnt in Slovenia in last 3 years are: 1. There is still high interest and support for further development among private forest owners. Their main interest is in biomass production (especially wood logs and wood chips). The main problem presents the lack of cooperation among them, mainly due to lack of trust. Therefore most of them wonted to invest by themselves, which resulted in a large number of smaller producers scattered around country side of Slovenia. 2. Many investments done in the period of 2007 – 2013 were done with support of rural development program. Through this program forest owners bought forest machinery, splitter and wood chippers. 3. Forestry companies and majority of fuel producers (logs, wood chips and wood pellets) supported the idea to established a catalogue of wood fuel producers and they are willing to cooperate in this task also in the future (updating data on internet). 4. Idea of Biomass trade centres was accepted very well and in this three years we supported several initiatives and we are still getting requests for further cooperation and technical support. The main difference between idea on BLTCs in Styria and in Slovenia is that in case of Slovenia the investors are still mainly individuals or single smaller (local) companies. Only in the case of BLTC Pohorje – Kozjak a group of forest owners established a cooperative and then they decided also to establish a biomass trade centre. 5. Energy contracting is an interesting model that could be implemented in many public buildings all around Slovenia, but at the moment there are some legislative and bureaucratic barriers for this kind of business model. Modern heating systems are supported and promoted but the model for financing and contracting is not the same as it is explained in energy contracting booklet. Further efforts are necessity to promote this model and especially to remove mentioned barriers. In the frame of BLTC II project this kind of actions were not foreseen for Slovenia. 6. We are happy to report that trough BLTC II project 10 different investments projects were supported and according to feedback from different target groups in next year’s even more projects will be realized. 7. An important and new activity was also development of QA/QC system that contributed a new dimension to Slovenian wood fuel market. Developing and testing of QA/QC system was a task that was especially welcomed by biomass producers and also users. We are hoping that this ideas will be further developed in the future and lessons learnt from testing companies will be used also in other similar companies. We also received some further request for companies to develop a system of trade mark for wood chips that could be used in local/regional market. 17

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 8. System of wood fuel prices monitoring was the first of its kind of Slovenia, data collected in the frame of this project was used by Ministry responsible for Energy and Ministry responsible for Forestry, by different Chambers, institutions and also by other stakeholders. Interest for maintaining this kind of wood fuel price monitoring is very high so we will keep the system also in the future. 9. Last but also important lessons learnt goes to project management and dissemination activities along the project duration. We learned that project management is a “full time job” that needs strong monitoring and constant communication with partners. Monitoring and management of project results dissemination via different channels is another aspect that considers a full time engagement of the project coordinator in order to successfully finish the tasks.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

3. Austria (Partner 2: Styrian Chamber of Agriculture and Forestry and Partner 7: Styrian Forest Owners Association) 3.1. Wood biomass situation in Austria/Styria Austria has a long tradition in heating with biomass. Up to 1970, single stoves were dominating domestic heating in Austria. Thereafter, single stoves were increasingly substituted with modern central heating systems. The number of dwellings with biomass heating systems (broken down by single stoves, one floor heating and central heating) is shown in Fig. 25. After the 1970ies, which were characterized by a decreasing number of dwellings equipped with biomass heating systems, there was a strong trend towards biomass-based central heating systems. In 1988 about 21% of all dwellings in Austria were heated with biomass. As a result of declining oil prices, there was a clearly decreasing trend from the beginning of the 1990ies until 2005. Thereafter, sales figures of modern biomass boilers rose significantly, resulting in an increasing importance of biomass in domestic heating1. Biomass district heating became increasingly popular during the 1990ies, partly due to investment grants of the “Länder” (provinces) and the Ministry of Agriculture. After the 1990ies the deployment of district heating plants declined, but district heat generation in CHP plants rapidly gained in importance. Fig. 26 shows the development of district heat generation broken down by plant types and the share of district heat originating from biomass plants. Since 2008, biomass heat and CHP plants account for more than one third of the total district production in Austria2. In the beginning of the 80’s (after the second oil crisis) the Austrian government forced the use of bioenergy mainly to reduce the dependence of imports of coal and oil. There were a variety of measures to facilitate the marketing of renewable energy sources both at the federal and the provincial level, ranging from fiscal measures and subsidies to emission standards. With respect to biomass heating systems, investment subsidies are granted in every province but their amounts and conditions are different. In Carinthia and Vorarlberg, fixed amounts are paid out, whereas in other provinces, such as Burgenland or Styria, the subsidies account for certain proportions of the total investment costs. In some provinces there are also additional requirements and restrictions and thus, a comparison between the different support schemes is not straightforward. In some regions, municipalities also grant subsidies for domestic biomass-fired heating systems and there are also support schemes for the installation of small-scale district and local heating systems in some provinces (e.g. Styria, Upper Austria, Carinthia). Biomass fired combined heat and power systems and heating systems for agricultural purposes are subsidised both at federal and provincial level (see above). Austria has been very successful in recent years in developing sustainable energy technologies like solar water heating and biomass heating technologies. One reason for this is the promotion of the use of renewable energy with subsidies. The following figure illustrates the dynamic development of investment subsidies for domestic biomass heating systems in 1 IEA BIOENERGY – TASK 40 Sustainable International Bioenergy Trade: Securing supply and demand Country Report Austria 2011 2 IEA BIOENERGY – TASK 40 Sustainable International Bioenergy Trade: Securing supply and demand Country Report Austria 2011 19

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Austrian provinces during the period 1998 to 2005. In 1998, investment subsidies were granted only in Burgenland, Upper Austria, Carinthia and Vorarlberg. There were no direct subsidies in the other provinces but the installation of new heating systems was supported by the granting of soft loans. In the following years, direct investment subsidies were introduced in all provinces and in most of them the amounts were raised significantly3. Assessments of biomass potentials are numerous and the results vary widely. There are different concepts of potentials (e.g. theoretical, technical or environmentally compatible potentials). Usually potentials in literature are qualified according to these definitions. Yet methodological approaches, assumptions and constraints of potential assessments differ from study to study, and therefore results are often not directly comparable.

Figure 1: Market development of biomass boilers from 1994 to 2012 in Austria Source: Landwirtschaftskammer Niederösterreich (2013)

Development of heat sector in Austria The year 2012 shows further recovery on the market in the area of the examined technologies. One factor was the permanently high oil price which was more than 100 $/barrel in 2012: the second year in a row with such a high oil price. A negative factor was the reluctant economy last year. However the market development of the examined technologies was not as uniform as might have been expected from the marginal conditions. After losses in the previous year biomass heating stoves and heat pumps clearly increased on the market last year. The growth of photovoltaic on the market continued the fourth year in a row whereas the photovoltaic market almost doubled in 2012. On the contrary the sales figures of biomass heating stoves and solar heat decreased. Consequently the sales figures of solar hear decreased the third year in a row. Reasons are the increasing competition between solar heat and photovoltaic in regard to surface area and investments. The further development of the sales figures of

3 IEA BIOENERGY – TASK 40 Sustainable International Bioenergy Trade: Securing supply and demand Country Report Austria 2011 20

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII the examined technologies depends heavily on the general development of the economy. Furthermore the main market of the heating technologies will move from new construction to reconstruction in the upcoming years whereby the reconstruction rates will become an important factor. The market for biomass boiler has increased steadily from 2000 until 2006. A market break of more than 60 % occurred 2007 with low prices for heating oil and the mentioned supply shortage of pellets. For 2008 the sales figures reached again the level of 2006. For 2010 a slight reduction of sales of pellets boilers about 4 % was documented. For 2010 the sector of wood log boilers suffered substantial market break due to the economic and financial crisis. In 2012 the market for pellet boilers was growing again with 15 % increase of sales. In 2012, on the Austrian market 12,076 pellet boilers, 6,887 wood log boilers and 4,264 wood chip boilers were sold, concerning the whole range of power. Furthermore 2,857 pellet stoves, 9,155 cooking stoves and 20,244 wood log stoves were sold. Austrian biomass boiler manufactures typically export approximately 70 % of their production. In Germany for instance two out of three installed biomass boilers are of Austrian origin. Germany and Italy are the biggest export markets for Austrian companies. 4 The biomass boiler and stoves sector obtained a turnover of 1247 mio Euro in 2012. This resulted in a total number of 5871 jobs. Research efforts are currently focused on the extension of the power range, further reduction of emissions, optimisation of systems and combined systems, annual efficiency improvement and in the development of market-ready small-scale and micro CHP systems. The success of bioenergy highly depends on the availability of suitable biomasses in sufficient volumes and at competitive prices. Thereby short rotation forestry is seen as highly potential for the future extension of the biomass base. This development is determined by regulative policy measures such as the Common Agricultural Policy. Furthermore, the development of bioenergy has to be coordinated with other biomass based branches and stakeholders. Together new synergies should be established to maximise added value from (especially regional) biomass. Technological research and development is required in order to further exploit new resources and to reduce costs along the supply chain under consideration of sustainability aspects.

Figure 2: Market development of different biomass fuel types from 2007 to 2012 in Austria Source: BIOENERGY 2020+

4 Innovative Energietechnologien in Österreich Marktentwicklung 2012, Biermayer et al. 21

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Analogous to the Austrian development even the development in the small and medium size biomass boiler sector in the BTC2 target region Styria was very pleasant. The region hast the highest density of biomass boilers per capita in Austria. Never the less still a lot of support is necessary to motivate private customers to switch from fossil to renewable fuels for heating domestic houses. The table below show the development of sold biomass heating boilers (< 100kw) in Styria from 2001 to 2012. Despite economic crisis the trend is positive. More than 36.000 new modern small and medium biomass heating boiler were sold in the last 10 years. Never the less a high number of new installed boilers leads to a higher consumption of regional wood fuels 40.000 35.000 30.000 25.000 woodchips 20.000

pelles

15.000

wood logs

10.000 5.000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Figure 3: New installed biomass boilers < 100kW in Styria Source: Biomasseheizungserhebung 2012, Lk Nö

Figure 4 and Figure 5 provides an overview of the increase of wood fuel demand from 1995 – 2013 and an extrapolation of the wood fuels demand until 2020. These figures represent the wood fuel demand of all biomass heating plants in Styria. We elaborated these figures within the BTC2 project. They are a very useful tool for further strategic decision in the biomass sector. The figures were discussed with all relevant decision and policy makers in Styria and even above, as they provide a comprehensive view of the actual and current wood fuels demand in Styria. Styria is the first region in Austria that is able to provide such figures.

22

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Figure 4: Demand of wood fuels for heating plants in Styria, 1995 – 2010, Source: Metschina C. 2013 4.000.000

3.500.000

3.000.000

[Srm / a]

2.500.000

2.000.000

1.500.000

1.000.000

500.000

0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 KWK Anlagen 1.309.564 1.325.841 1.342.117 1.358.393 1.374.669 1.390.946 1.407.222 1.423.498 1.439.774 1.456.051 1.472.327 > 1MW 936.658 964.800 996.601 1.027.448 1.057.369 1.086.393 1.114.546 1.141.855 1.168.344 1.194.038 1.218.962 401kW - 1MW 200.290 207.652 216.516 225.115 233.455 241.545 249.393 257.005 264.388 271.550 278.498 BMN bis 400kW 191.391 201.318 214.003 226.054 237.502 248.378 258.710 268.526 277.851 286.709 295.125

Figure 5: Demand of wood fuels for heating plants in Styria and extrapolation until 20120, Source: Metschina C. 2013

3.2. Wood biomass production The production of wood biomass increased significantly within the last years in Austrian and in the BTC2 target region Styria. The reason therefore are new investments in heating plants, CHP plants and small and medium biomass heating systems based on biomass. Investments in new heating systems cause also an increase of wood fuels for energetic use. Local biomass producers became key players in the Styrian energy market in order to secure a sustainable raw material supply. Within the project we identified potential producers of wood biomass and motivated them to enter the biomass market not only for self-supply but also in selling wood fuels to others. Within our WS potential producers were identified: 23

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Biomas producers in Styria

Number

regional privat biomass producers

83

Professional forestry companies

139

Figure 6: Biomass producers in Styria 2012 per region, Source: Metschina C. 2012

Figure 7: Availability of wood fuels in rural areas

Figure 8 shows one of the biggest issues on the private wood fuels market – the permanent availability of wood fuels for private customers. The results of Figure 8 base on a survey in the year 2010. So we focused our activities within the project on an efficient and cost effective production of high quality wood fuels even for small and medium producers. Even in a high developed country like Austria there is a lack of knowledge, regarding the production of wood-fuels. Workshops for Biomass Producers: The main goals of workshops were to transfer technical knowledge to farmers, forest owner, forest enterprises, investors and other biomass chain stakeholders, concerning the possibility to produce biomass from forestry assortments (logs) from forest residuals (wood chips), agricultural waste, and other 24

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII sorts of woody residuals. Another strong focus was the development of new short rotation plants in order to secure the supply the biomass heating plants with raw materials on one side and to stimulate investments and help farmers entering the bioenergy market on the other side. The WS were partly organised in combination with half day demo evens to continuous the Styrian touch with hand approach in realising concrete projects. Within the different WS we cover the whole production chain of biomass but always with the focus on the promotion of new investments in wood biomass production. Here we discovered a very high interest of farmers and forest owners. According to the actual woodfuels prices in Styria the production of biomass is profitable but just in connection with harvesting activities for saw logs assortments. The main driver of biomass mobilisation is the sawmill industry, but based on our knowledge and material from BTC 1 and BTC 2 we can advise farmers to use the by-product Biomass in an efficient way. The WS and demo events in Austria have always a very intensive discussion session at the end where we gather feedback from the participants in an informal way for our further work and presentations. Farmers and forest owners appreciate the way of training and know how transfer as promoted in BTC2 very high, otherwise there would not be so many participants at our events. Even if the level of knowledge in the sector is very high there are still many players who are at a very early stage at the moment and therefore still need further support for new investments.

Figure 8: WS biomass production in Styria

3.3. Establishment of BLTC - engagement of target groups Based on the work from previous BLTC project, where new Biomass Trade Centers were realized Lk Stmk and WVB GmbH provided support in order to realize new Biomass Trade Centers, to find partners for existing Biomass Trade Centers or to enlarge existing projects. Another crucial point is the communication between the biomass trade centers in Styria. In the light of rising prizes for the raw material the intelligent use of synergies between the existing Biomass Trade Centers is vital. 25

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Workshops: LK Stmk organised 3 preliminary workshops in different regions, inviting specifically the private-public market protagonists already identified and involved in further formative activities. Per workshop we had between 10 – 20 participants. Two types of technical workshops were organised: initial workshops from month 12 to 20 for the regions where new BLTC will be initiated, and “advanced” workshops from month 18 to 29 for the regions that already have BLTC. The aim of the preliminary workshop was to educate and motivate the market protagonists at the regional level supporting technically the concrete implementation of new BLTC across the pilot regions. This task is an important action for the transfer of transnational know-how from the BiomassTradeCentres project. Within this WS we identified potential new investors to accompany the on the way to the new investment. The aim of the advanced workshops was to educate suppliers of wood biomass and BLTC owners about quality provision. The main discussion within this WS were the implementation of QA/QS systems at existing BTC but also at larger providers of wood fuels like wood chips and wood logs. With the WS we addressed operators of Biomass Trade Centres, farmer and forest owners, private producers of wood chips and wood logs but also stakeholders from wood owners associations and decision makers from chambers. To think out of the box, we organised a study tour to Südtirol where we visited agricultural energy associations mainly dealing with wood biomass. Other study tours were organised to Radkersburg, Hitzendorf, St. Margarethen an der Raab and Leoben, to Neukirchen an der Enk and to Hitzendorf. Further we organised together with WVB GmbH Stmk 5 open days at existing BTC to foster the communication between suppliers and customers of biomass. Around 1600 people from all over the province of Styria visited the open days in 2011 and 2013. Results from WP 3:

Figure 9: BLTC Hamker in Feistritz

Contribution within BLTC2:    

Elaboration of project idea Stakeholder meetings and info evenings Pre- feasibility study Technical calculation 26

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII    

Financial business plan Feasibility study Technical support Economical support

10.000 m³ wood chips - 150 m³ log wood – investment 188.000€

Figure 10: BLTC Hammerl

Contribution within BLTC2:

      

Elaboration of project idea Info meetings Pre- feasibility study Technical calculation (wood chips with M15) Financial business plan Technical support Economical support

1.000 m³ wood chips – investment 55.000€

Figure 11: Enlargement BLTC Hartbergerland

Figure 12: BLTC Raabtal

27

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Contribution within BLTC2:     

Pre- feasibility study Financial business plan Feasibility study Technical support Economical support

2.500 m³ log wood – investment 200.000€

Contribution within BLTC2:

      

Elaboration of project idea Stakeholder meetings and info evenings Pre- feasibility study Technical calculation Financial business plan Feasibility study Organization of the inauguration

10.000 m³ wood chips - 500m³ log wood - 275.000 €

Figure 13: BLTC Schiester

Contribution within BLTC2:    

Elaboration of project idea Stakeholder meetings and info evenings Pre- feasibility study Technical calculation 28

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII    

Financial business plan Feasibility study Technical support Economical support 1.000 m³ wood chips - 400 m³ log wood – investment 196.000€

3.4. Wood Energy contracting In many cases the switchover from oil and gas to biomass is linked with one or more of the following obstacles:   

the high up-front investment costs of biomass heating systems the demands of fuel logistics the lack of system-specific knowledge

The wood energy contracting model offers a good solution to these obstacles because it is based on the idea of energy services. This means that site owner has no direct interest in their heating system, but rather in achieving a reliable energy supply. Especially schools and other public buildings often use the contracting model to switch from oil to biomass. In the context of this specialized energy supply model, a group of local farmers invests in a biomass heating facility located on the client’s premises and enters into a long-term heat supply contract. The operators are responsible for fuel provision, repairs and maintenance, and the heat generated is sold to the customer. The aim is to relieve the end customer from the burden of energy supply. Local energy supply contract solutions are suited both to new-builds and to the modernization of existing buildings. The common installed capacity for biomass boiler > 100 kW, providing heat is about 733MWth.

Figure 14: Biomass Heating Plants and CHP in Styria Source: LEV, LK Stmk Metschina C. 2013

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Environmental considerations and positive consequences for Styria The 265 wood energy contracting projects in Styria, with an installed capacity of 30 megawatt, are making a valuable contribution to the supply of reasonably priced energy to regional consumers. The Styrian wood energy contracting projects sells around 45.000 MWh of heat from local, renewable sources per year and secures the energy supply to the region. This enables to save 7 million liter of heating oil and the emission of 17.500 tons of environmentally harmful carbon dioxide every year.

The Syrian wood energy contracting market is able to attain annual cost savings of € 4,5 million by converting from an oil-or gas-based heating system to bioheat. Not least, the projects also created new employment opportunities and put an end to money being drained from the region.

Figure 15: Wood Energy Contracting Projects in Styria Source: Regionalenergie Steiermark 2013

The idea of contracting Energy contracting is a market orientated model for selling heat produced from biomass to one or more users (as local or district heating) for a defined period. This means that energy is supplied and/or comprehensive energy saving measures are implemented by an energy contractor, rather than by the owner. The energy contractor is a specialist service company that takes on all of the tasks (e.g. planning, construction, financing and operational management of a heating plant) as well as the risks associated with the energy service. Due to their experience and knowledge, the contractor is often able to supply the desired energy services at lower cost than the owner of the site. The energy service is financed by the energy savings made, meaning that the site owner does not incur any additional costs. The contractor is responsible for deciding which fuels, technologies and energy saving measures will be used to achieve the service objectives. The cost of fuel is no longer the critical factor for the site owner. Instead, what matters is the cost of the energy services. 30

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Case study for implementing a wood energy contracting project Wood energy contracting project Sinabelkirchen Description

The wood energy contracting project Sinabelkirchen was established in autumn 2012. The company Rosenberger Ltd. invested in a biomass heating system (boiler, storage room, heating pipe, heat-exchanger) to supply the old people´s home “board and care home Sinabelkirchen” and private householdes with environmentally-friendly heat. The wood energy contracting system was built contiguous to the old people´s house. The system includes solar thermal panels to provide hot water for summer. This solution reduces the wood chip demand and guarantees that the boiler runs as long as possible in the peak load (lower emissions). The Rosenberg Ltd. sells the heat and is responsible for monitoring, service, repair and reinvestment of the system, as well as for chimney-sweeping. The wood chips will be delivered by five regional forest owners.

Key facts

      

Heat demand: 180.000 kWhrs/yr Woodfuel Boiler size: 120 kW Type: KWB Woodfuel demand: 300 loos cubic meter (M20-30, P16) Woodfuel storage: 120 loos cubic meter Accumulator tank size: 10.000 litre Solar system: 40 m² Investment costs: € 165.000 (exclusive tax)

Key design points

 

the system is built near the heat customer to avoid heat losses the accumulator tank (insulated hot water tank) used to help the system run efficiently the 40 m² solar thermal panels provides free hot water for summer needs and reduces the wood chip demand and heat losses in the network



Lessons Learned

   

An appropriate fuel logistics plan is necessary. Plan maintenance and monitoring must take place at regular and scheduled intervals. It is important to inform the public about such projects. It is not possible to realize such projects without funding’s.

31

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Pictures

Wood energy contracting model with solar panels on the roof

KWB boiler with puffer tank

Nursery hous Sinabelkirchen

32

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Energy Contracting Booklet The booklet on Energy contracting was prepared by Styrian Chamber of Agriculture and Forestry and it was translated to German, English, Slovenian, Catalan, Romanian, Spanish, Greek and Croatian language. The booklet contains lessons learnt from the existing biomass plants and a list of recommendation to avoid the same mistakes. Download: www.biomasstradecentre2.eu

Presentation of the booklet on the “week of the wood 2013” in Graz

3.5. QA/QC system The main goal of this WP was the sensitization and implementation of QA/QC with regard to current CEN and ISO standards. Therefore trainings, booklets, workshops and study tours were organised. Within our activities we targeted small and medium biomass producers and Biomass Trade Centers.

Figure 16: Biomass Handbook with regard to QA/QC Systems Source: Lk Stmk/WVB GmbH, 2014

33

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Figure 17: Certificate from biomass laboratory HFA Figure 18: Booklet about Wood-Fuels and CEN/ISO for all CEO´s of BLTC, Source: Lk Stmk, 2014 Standards, Source: Lk Stmk / WVB GmbH,

Implementation of QA/QC system:

Figure 19: Taking of samples at BLTC Leoben, Source: Lk Stmk / WVB GmbH, 2014

34

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Figure 20: Weighbridge at the BLTC Leoben, Source: LK Stmk/WVBG GmbH, 2013 Figure 21: Delivery of cetified woodchips with a wood pump at BLTC St. Lambrecht Source: Lk Stmk / WVB GmbH, 2014

Figure 22: Preparation of biomass sample by CEN/ISO at the BLTC

35

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 3.6. Lessons learnt and special achievements Lessons learnt for wood energy contracting Lessons learnt are taken from practical experiences in wood biomass heating systems planning, construction and operation. Through lessons learnt, new investors can check out what are the critical points in the way to successful energy contracting projects. Within our WS and Trainings we focused on critical points based on the lessons learnt from previous realized wood energy contracting projects.

Planning 

The planner must have the necessary know-how and expertise.



The heat demand survey/situation analysis must be carried out with the requisite degree of accuracy.







The return temperatures must be recorded correctly. Excessive return temperatures are often the result of an inadequate situation analysis. Optimisation of the flow and return temperatures and grid controls leads to a reduction in grid losses and pump electricity costs. The heating grid should not be oversized (pipe dimensions and expansion). Furthermore, steps should be taken to ensure that the

Construction 

Operation

When constructing the boiler house and fuel storage unit, adequate consideration must be given to the cost involved. In most cases, the construction is too expensive and elaborate.



The operator of the plant should be adequately trained.



Only fuels that have been approved by the manufacturer of the heating system may be used.



A skilled construction supervisor must be available.





The leak monitoring devices and coupling joints used throughout the heating grid and for the connection to the building must be flawless.

Plant maintenance and monitoring must take place at regular and scheduled intervals.



Ensuring that the plant is managed properly (e.g. buffer store management) must be a key priority.



The operation of the plant should be optimised continuously. For this purpose, the operating status must be documented appropriately.



Meter readings and plant malfunctions must be documented on an on-going basis.





The commissioning of the entire plant/plant components must be carried out according to professional standards. Particular attention should be paid to the availability of corresponding documentation (handover record, plant description). Every heating plant should have a handover 36

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII routing is appropriate for the respective grid. 



Optimisation of routing and overall grid length leads to a reduction in investment costs and heat losses. There needs to be an appropriate fuel logistics and ash handling (ash disposal) plan.



record, plant documentation and an operational optimisation plan.



The quality of the water in the circuit must be checked at regular intervals.

The generation system (boiler) should not be oversized. In most cases, boiler oversizing is a result of an incorrect estimation of heat demand volumes (incorrect situation analysis).



All changes to the plant must be documented (e.g. wiring diagrams must be updated to avoid problems).



The system needs to be configured appropriately (type, number and output of the individual heat generation elements)

Lessons learnt for wood biomass production Lessons learnt were taken from practical experiences in realizing QA/QC, implementing new biomass businesses (cross over) establishing or enlargement of BLTC´s and from workshop participants feedbacks.

Company Feedback implementation of QA/QC Through the quality control – process conclusions could be drawn to the energy content of the wood chips. It’s very valuable to have documented processes and a continuous monitoring to keep and improve the quality of the products. It’s very valuable to have documented processes and a continuous monitoring

Lessons learned Customers put more value on good quality. They want to buy proofed quality.

There is a lack of knowledge about CEN and ISO standards. Even professional biomass producers are not aware about current guidelines and standards. Considerably less, private producers are aware about CEN/ISO and QA/QC. It will need big efforts in the future to bring this topic to the relevant target group. Therefore further activities in this sector, supported by EASME are indispensable. 37

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

each BTC needs an professional manager who is responsible for all actions going on at the BTC

the involvement of regional partners is crucial for the success of a BTC

There is still need of professionalization within the production of M15 wood chips for micro CHP plants. The demand will increase in the future

The market analysis should be made by the person on site, who is more able to make an estimation about the market and the potential of customers

3.7. Special achievements        

First Biomass Handbook about implementation of QA/QC Wood Fuels booklet about production of biomass and CEN/ISO Wood Energy Contracting Handbook for investors 2 BLTC implemented successful the QA/QC system All CEO´s of Styrian BLTCs are extern (HFA) certified traders of energy wood 6 new or enlargements of BLTC in Styria Support of 4 new Wood Energy Contracting projects 6 new business in rural areas entering the biomass market

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

4. Italy (Partner 3: 4.1. Wood biomass situation in the country / region Overview of the Italian bio-heat sector Among the renewable sources in Italy, wood is the first source in term of primary energy contribution. The Italian target, based on Directive 2009/28/CE, is to reach the share of 17% of RES within 2020. In Italy the final heat consumption is of a great importance, in 2012 it was 59 Mtoe. 44,5% of heat is used in the domestic sector (59 Mtoe). Logwood for domestic heating Recently it has been estimated a logwood internal consumption of 27,3 million tons. In domestic scale are used 22,6 million tons (19,3 M tons logs; 2,2 M tons pellet). The consumption of wood chips is estimated in 4,7 M tons, especially for industrial use. The small-medium size heating plant are improving. 6.5 million of household use log wood as energy source, using yearly in average 4.4 t of firewood mainly for heating purposes. 68% of logwood is burn in low-efficiency domestic heating systems like open fire places and tradition wood stoves. Only 7% is used in modern heating appliances (innovative stoves). The forest area in Italy has increased significantly in the last 50 years, with an increase of forest cover from 5.5 M ha (1950) to 10.4 M ha (2000); with further 2-3 M ha are in natural conversion toward forest stands. 7.6 Mm3 are exploited annually, compared to the current annual increment of about 36 Mm3 (21%). 65% of this volume is used for firewood production, while 35% is oriented to wood industry. At international level Italy is the (ETIFOR, 2012):       

6th largest importer of wood 2nd European importer of wood 1 importer of wood from the Balkans and southern Europe 2nd European importer of tropical wood 1 importer of firewood 4th largest importer of wood chips 1 importer of wood pellets for residential use.

The most common utilisation of the wood biomass for the production of thermal energy is represented by firewood for domestic use. The pellets use had a large increase, particularly due to the development of technologies and import. The large part of consumption of wood chips is due to the presence of large scale power plant, but small-medium size heating plant and CHP (< 1MWe) are spreading on the territory.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Annual consumption of wood biomass in Italy: PELLET 12% CIPPATO 17%

LEGNA 71%

In the 2013 were consumed in Italy 27,3 million tons of woody biomass: Following is reported the evolution of the number of boilers installed in Italy (Baù, 2014)

Firewood The consumption of firewood amounted to 19.3 million tons, 80% of the three remaining 10% is allocated to the cookers. The installed base amounts to nearly 8 million units, a number that will remain fairly stable in the near future and that will evolve in terms of composition. Sales of wood stoves are in fact a slight increase and partially replace other equipment installed, including the fireplaces. Domestic boilers (rated power of less than 35kW) is the second destination of firewood, with an installed base of nearly 600.000 and an annual consumption of nearly 3 million tons. The domestic sector of the wood-burning appliances, especially stoves, subject to severe competition of the pellet, which erodes part of the sales. But the evolution of the market will still be able to leverage a higher incidence of devices with higher yields and levels of consumption and lower emissions. 40

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Finally, only a marginal share of firewood, amounting to 0.2 million tonnes (1% of the total), is intended for civilian and industrial boilers, mainly with a capacity of between 36 and 100 kW. Pellets for domestic heating In 2013 the internal production of wood pellets was about 300.000 t while 2.500.000 t have been imported mainly from Austria, Germany and Croatia (Baù e Paniz 2009). Internal production and import of pellets 2006-20013 (Baù e Paniz, 2009) – ton x 1.000

Pellet produc on and consump on in Italy (kt)

3.000

Produc on

2.500

Consump on 2.000 1.500 1.000 500 0 2006

2007

2008

2009

2010

2011

2012

2013

Pellets is sold mainly in 15 kg sacs, therefore it is addressed mostly to the pellet stoves market. The market of centralized pellet boilers is much less developed.

Chips on big power plants The consumption of wood chips amounts to about 4.7 million tonnes, of which 70% is fed power plants and cogeneration plants. About 20% is intended for boilers, mainly with power less than 1 MW, and the remaining approximately 10% goes to plants for district heating. The number of power plants and large plants is growing. However, it is difficult to quantify the evolution of the consumption of wood chips, as it is strongly linked to the management of the plant. Prices and competitiveness of bioheat The following graph shows the wood fuels energy prices trend (€/MWh primary energy) in comparison with the most common fossil fuels used for heating purpose.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Trend in the price of wood chips in Italy, according to the quality class, UNI EN 14962 (Nov. 2010 – Apr. 2014)

The role of woody biomass in the production of renewable energy The biomass sector plays a strategic role in Italian politics of renewable energy. According to the National Energy Plan (NAP), which was approved in June 2010 implementing Directive 2009/28, 2020 biomass should have become the primary source of renewable energy in Italy, reaching a gross production of energy equal to 5.2 Mtoe. According to the results of the study of consumption, in 2013, the objective has been largely achieved. The only woody biomass have in fact produced 9 Mtoe, 95% of which are thermal energy and the remaining 5% electricity. It is a result that highlights the economic and political importance covered by the sector, such as to represent approximately 20% of the national production of thermal energy and 80% of the thermal energy from renewable sources In the next graph is shown the distribution of renewable energy, planned for 2020 in Italy, according to the PAN, expressed in ktoe.

In the following graph is shows the breakdown of the three types of energy in Italy (planned for 2020) according to PAN data, referring to the production of total energy produced from all renewable.

Compared to the total energy consumed in Italy (2008) the heating energy occupies an important fraction, approximately 45%. At this energy, however, is not associated with an equally focus with 42

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII programmatic incentive. The graph below show the current distribution of energy consumption in Italy (AIEL and PAN modified with updated data, 2012) and in particular what the impact on the woody biomass for heating energy. The assumptions relative to baseline consumption of woody biomass made in the PAN, are strongly underestimated: the main production of energy from solid biomass planned for 2020 (5.2 Mtoe) is probably a target already reached: current consumption rates estimated in the range of 18-22 M t, about 6.7 M toe.

-

Teleriscaldamento: district heating Minireti: Small size district heating Consumi domestici convenzionali: domestic consumption Impianto di produzione di EE: Plant for electricity production

PAN should be revised the programmatic assumptions and forecasts to better define the opportunities for development of the first source of renewable energy in the country (Pettenella, 2011). ENEA communicates the amount of renewable heating energy in 2.4 Mtoe (2005). The heating energy planned for 2020 by PAN aims to produce 5.2 - 5.4 Mtoe, however, AIEL estimate, for 2010, that only consumption of domestic plants, small and large district heating, amounts to about 6.4 Mtoe, as described in the next graph. The use of woody biomass for energy purposes has assumed significant dimensions: More than 10 million devices and systems installed Fueled by over 27 Mt / a of wood chips and pellets (9,5 Mtoe)

Growth driven by:   

a positive sales trend of biomass heating systems a cost advantage of wood biofuels compared to fossil fuels Italian and EU energy policies aimed at encouraging the use of renewable 43

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 4.2. Wood biomass production To support further development in biomass production AIEL realized the folowing activities: 1. Updating of the Wood fuels Handbook for biomass production, with improvement of detail for QA/QC system implementation. This publication is aimed at improving the professionalism of the log wood and wood chip supply chain on a regional scale by supporting the implementation on the market of European Technical Specification UNI EN 14961 and UNI EN 15234, at the same time, a better match between supply and demand. Producers are asked to supply wood fuels according to qualitative classification of solid biofuels, therefore suitable to heating appliance requirements. In order to encourage the installation of new modern wood heating systems, it is essential that the supply of log wood and wood chips meet the confidence of costumers and investors in the local availability of wood fuels of proper quality.

2. Definition of a document for the presentation of state of art for bioenergy chain in Italy. The document aims to have a report on the real situation of woody biomass market in Italy and give some lineages to stimulate investment 3. Catalogue of biomass producers, forest operators and owners. Catalogue, were distributed on the occasion of the events that took place within the BiomassTradeCentre2 project arranged by AIEL both within the attendances at conferences, biomass fair, symposia and training sessions or demonstrative travels to locations with tremendous accomplish-ments in terms of wood biomass. The documents were distributed both in hard copies and electronically by mail and web site, to the interested people belonging to the target-groups. The report are published on

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII www.biomasstradecentre2.eu.The catalogue collect 150 biomass producers (firewood, woodchips, wood briquettes) coming from 9 different region of Italy

4. Individuation and description of 3 good practices examples of professional biomass producers actually operating in Italy in the contest of forest-agricultural areas. Were identified Magnifica Comuità di Fiemme, Tecno Val and Cip Calor companies. The report are published on www.biomasstradecentre2.eu

5. AIEL realized 11 Workshops and demo events to facilitate the production of wood biofuels and placing on the market of products with technical standards accordant with UNI En 14961. The main goals of workshops were to transfer technical knowledge to farmers, forest owner, forest enterprises, investors and other biomass chain stakeholders, concerning the possibility to produce biomass from forestry assortments (logs) from forest residuals (wood chips), agricultural waste, and other sorts of woody residuals. Another aim of the event was to stimulate the investors, to educate about the quality of woody biomass and to develop the knowledge of professionals and stakeholders. With these workshop AIEL intend to show to local stakeholders the investment opportunities in the chain from the local production of biomass till the energetic end-use. In these occasions AIEL organized high professional technical seminars, involving referenced representatives in the wood-energy sector. During these meetings were hotly debated and developed business opportunities, thanks to the meeting between operators. During the workshops were always distributed technical materials of BTC, BTC2 and AIEL, to all participants, for example the brochure for promoting the investment in establishing new BTC across Veneto Region. The workshops were, almost always, characterized by great participation and great interest from participants, testified by interaction of participants and by contact made and investment activated. A series of contacts and meetings through which AIEL offered technical advice to those concerned, it is the index of a positive feedback from participant. Following some photos of the event: 45

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

6. This task has represented a very important tool for retrain farmers and forestry operators. In the frame of DEMO innovative technologies and machineries for exploiting, processing, splitting and chipping wood for energy were showed with dynamic demonstration. DEMO fields both in forest area and in arable land were ideal spot for disseminating the project deliverables. The whole DEMO-field were followed by experts who explained technically to participants the showed machines and the demonstrative trials scheduled. Demo events organized by AIEL were always linked with workshops that, before visit to the sites or plants, offered an overview about techniques, biomass collecting and transformation systems, market, technologies and final use. Demo event are organized in the ambit of Professione Legno Energia fair (May 2011) and Progetto Fuoco fair (February 2012). The demonstration was characterized by setting up in yards, where simulated sites were organized and biomass producers were invited to expose their machinery, to work material and show to visitors and potential investors, as occur the woody biomass proceeds. Demonstration with machinery for production of biomass was linked with demonstration of characteristics and functioning of biomass heating plants (logs, wood chips, pellet, briquette), managed by exhibiting companies. The interaction between the various component of the chain, was essential to understanding the correct use of biomass in modern plants, in relation to its qualitative characteristics. Participant to demo event had the opportunity to discuss with the producers and make requests for specific information, in addition to see the machines running. Following some photos of events:

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

7. 3 training course were realized by AIEL for this task: AIEL organized a training destined to farmers and forest enterprises, regarding the production phase of wood fuels with specifications about machines and tools for production, collecting and harvesting costs, quality standards for woody biomass (logs, wood chips and pellet) and normative aspects and final use of wood biomass in heating plants. The lesson described the technologies available on the market, and different system for energy recovery of wood biomass. Aim of the event was to promote innovative e modern machines for producing and use wood fuels. The main positive feedback came from farms participating, running activities with greenhouses, because interested to collecting woody residuals from agricultural activities and using these to supply the heating plant in substitution of diesel fuel boiler. Following some photos of the events:

47

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

8. 5 Match Making events organized by AIEL. The main objective of match making events is to bring together forest owners, companies performing work in forest, biomass producers, owners of biomass trade centre and potential investors and users of wood biomass in modern plants. The main goal reached by these events has been to put forest owner, farmers and forest entrepreneurs in touch with the right business partner to buy and use biomass for energy production. Match making events served in many contexts to promote and stimulate the market on a local scale; often it occurs, after these events, that biomass producers proposed themselves to potential investors to install heating plants or to manage supply contracting. In other cases have been investors to look for biomass producers, helped by catalogue of biomass producers. Match making events helped the correct investments also in the realizing of biomass trade centres.

4.3. Establishment of BLTC - engagement of target groups The activities carried out within Chapter 3. Establishment of BLTC - engagement of target groups included such events as workshops arrangement, followed by discussions about the importance of creating BTC Centres and the reorganization of the existing biomass centres with the implementation of the European biomass standards for heating use, as well as study tours and open days, which had an effect on the stimulation of the potential investors. These events ended by one-to-one meetings, feasibility studies and final realization of structures. 48

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 7 workshops, 6 study tours, 4 open days, 3 feasibility study and 10 one-to-one meetings were organized within this chapter. Workshops The main goals of workshops were to transfer technical knowledge to farmers, forest owner, forest enterprises and biomass producers, concerning the possibility to produce biomass from forestry assortments (logs) from forest residuals (wood chips), agricultural waste, and other sorts of woody residuals. The objective is to stimulate the investing in realization of Biomass trade centre, able to give more added value to products and more professionalism to the enterprises. Another aim of the event was to stimulate the investors, to educate about the quality of woody biomass and to develop the knowledge of professionals and stakeholders. With these workshop AIEL intend to show to stakeholders the investment opportunities in the chain from the local production of biomass till the energetic enduse, in particular regarding the benefits to be gained from improved logistics management. AIEL divided workshops in preliminary WS and advanced WP, compared to the deepening of the topics covered and compared to type of stakeholders expected in the WS. The workshops were, almost always, characterized by great participation and great interest from participants, testified by interaction of participants and by contact made and investment activated. A series of contacts and meetings through which AIEL offered technical advice to those concerned, it is the index of a positive feedback from participant. Following some photos of the events:

49

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Study tour Study tour organized by AIEL were always linked with example cases of companies that realized BTC or chain structure of interest, that it was worthwhile to replicate. The main themes were the costs of the different phases of the production chain and which is the rule of farmers and forest owners in that sectors. Participants had the opportunity to visit some different reality (BTC, farms, machinery, logistic structure etc.. ) useful for make the most of their experiences and companies already structured. Study tours were the occasion for the meeting of subjects and investors that were able to illustrated processes in the supply chain and how to solve the problems once made the investment. The interaction between the various component of the chain, was essential to understanding the correct use of biomass in modern plants, in relation to its qualitative characteristics. Participant to study tours had the opportunity to discuss with the producers and make requests for specific information, in addition to see the machines running. Following some photos of the events:

Open days AIEL organized 4 open day. This was an opportunity to bring potential investors to see an effective and functioning BTC and for open the doors to potential customers, or other persons interested in installing biomass plants, which will source at the BTC visited. The Open Day was a excellent opportunity to disseminate the activities and services offered by companies that realized the investment for realization of technical structure to produce high quality wood chips and to ensure a safe and steady supply. The companies supported for the promotion of the new Biomass Trade & Logistic Trade Centre with open days was: TecnoVal, Relen, Ecodolomiti and Bettega. There was been good feedback from participants and there have been many discussions and insights with the owners. The open days events have been a positive effect as event for the promotion and dissemination of the efforts made by companies, in terms of professionalism and quality. AIEL organized open days event for the companies: -

Tecno Val Relen Ecodolomiti Bettega Biomasse

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Following some photos of the event:

One-to-one meetings One to one meeting has been organized by AIEL with biomass producers mainly interested in the investment for BTC. These subjects have been identified during workshop, study tour, trainings and open days, while some others have directly contacted us for consultants. The main objective of one to one meeting events is to give technical and economic information about the possibility to realize a BTC and offer logistic solution for storage, transforming and conferring of biofuel to final use. These meeting has been linked with the real possibility to design new BTC and these were an opportunity for exchanging data and information required to draw up the feasibility study. One to one meeting was also the opportunity for having inspections in the field and check the technical possibility and feasibility for achieving the BTC. Three feasibility studies were carried out for investments in two biomass centers were have been identified the technical possibilities of realization and profitability. BTC2 the project was fundamental to offer the logistics solution that can stimulate the local market, that actually limited by a low proportion of companies operating in the biomass sector and a few biomass plants distribution. The project permit to meet directly with investors after they had been contacted by AIEL, having collected information from the website www.biomasstradecentre.eu or during meetings and workshops organized thanks project activities. Feasibility studies had a strategic function within the organization, which has highlighted the limitations of companies and propose solutions to logistical problems. Feasibility studies have been highly appreciated and companies have already begun to undertake investment. 51

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII AIEL has realized 3 different feasability study for following companies: BIASI Legno: This initiative was selected because Biasi Legno is one of more important biomass producer in Province of Trento. Actualy the company is involved only in the supply of low quality wood chips, to large size heating plant, directly from the forest. Biasi is one of the first case in Province of Trento that that’s trying to shift the focus to quality, for which there is a need to structure. In this project is involved only one company. The total investment amount in 300.000 € (Annual cost: 690.000 €/y, including costs of production and purchase of material – 15.000 t/y) Regione Val d’Aosta: This initiative was selected because the Valle d’Aosta is an important tourist attraction where there is a large consumption of diesel fuel for the production of thermal energy. The mountain area is suitable replacement surgery of the plants and a substantial availability of raw materials in the local area, which can potentially be recovered from local businesses. In this project is involved an alpine valley contest. The BTC responds to the needs of one of the valleys in which there is a greater distribution of hotels, potentially interested in the conversion of thermal plants. The center of gravity of the platform will be born in this context. The total investment amount in 325.000 €, for a production of– 15.000 t/y SECAB is selected because is a important district to activate the first complete chain forest wood energy at 360 ° in the territory of Carnia (Friuli Venezia Giulia Region). The project is ambitious because it requires the involvement of forest enterprises, public forest owners, the timber industry and investors who have understand that the realization of BTC represents the fundamental and central focus of the project. In this project is involved mainly the SECAB society, but indirectly all the entrepreneurial sector of forest wood energy local. The total investment amount in 3.734.900 € (Annual cost: 3.000.000 €/y, including costs of production and purchase of material). The BTC will manage 4760 t/year of pellet and 7.200 t/year of wood chips.

Biomass Logistic and Trade Centres realized Thanks the technical support of the project, it could be possibile the establishment of 8 new biomass logistic and trace centres activities. It was possible to stimulate investment thanks to the meetings realized during the project events (one to one meetings, workshops) and thanks to specific and detailed technical advice. The professionalism of AIEL was made possible thanks to the support of the training course carried out during the project meetings. The information was then transferred to the companies that have decided to invest in the industry and in all cases have proved to be met from realized investments By means of the BTC project the companies received support about technical questions in building the storage place, and also for the feasibility plan and financial evaluation. Thanks BTC project it has been released a law for the creation of BTC in rural areas, from forest enterprises. Some of these companies benefited from this regional change in law (Veneto Region), applied through the project.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Ortis Legnami – Paluzza (UD)

Comunalie Parmensi, Borgo Val di Taro PR (Italy)

Friul Pallet, Faedis (UD) – Italy

De Luca – Cappella Maggiore (TV) – Italy – realized after a feasibility study realized with Biomass trade centre 1 Projec

Segheria F.lli Corazzola – Roana (VI) – Italy– realized after a feasibility study realized with Biomass trade centre 1 Projec

Coop Coal – Motta di Livenza (TV) – Italy

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Bettega Biomasse – Seren del Grappa (BL) – Italy

Ecodolomiti – Sospirolo (BL) – realized after a feasibility study realized with Biomass trade centre 1 Projec

4.4. Energy contracting In the study tour arranged in Austria, the project partners that participated in the organized activities had the opportunity of seeing the accomplishments in the field of producing high performance biomass heat supplying units, of visiting well organized BTLC biomass centers with a tuned quality system and the organization of an energy contracting system by mini-district heating, the system management and optimization and, last but not least, the quality management. The quality of the fuel and the efficiency of the plant were highlighted, too. An important instrument was made available to the stakeholders involved in particular in the supply chain for project contracting: the Booklet Energy contracting. The exchange of experience, technical documentation, training events, has allowed AIEL to structure a manual update of the contracting carried out by the Austrian partner. In particoular AIEL has implemented a handbook of basic work, creating an updated and tuned to the needs of Italian companies. These aspects related to biofuel production, installation and operation of biomass plants and elements of detail related to the market The Booklet Energy contractingis available on www.biomasstradecentre2.eu or www.aiel.cia.it web site.

4.5. QA/QC system – State-of-the-art, good practice examples, biomass laboratories, experiences with implementation of QA/QC AIEL selected 3 companies for the implementation of a quality assurance and quality control (QA/QC) system for the production of biofuels: -

Tecno verde Cip Calor Ecodolomiti 54

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII The companies selected has decided to undertake a process of updating and training within AIEL, in order to provide end users with a high quality service. The companies are associated with AIEL from many years and has attended numerous meetings and events organized under the project BTC2 (workshops, training races, study visits) . The idea of the project is to involve companies in a system that brings the benefits from the point of view of the quality of operations, but also the efficiency of biofuel production operations with a certified quality. These companies were selected from the following reasons: The company was set as an example thanks to the way in which it understood to valorise the wood waste materials under the form of wood chips, providing added value to the product with a quality assurance carried out by a laboratory and a quality control guarantee by a certification subject. The logistic structure of the companies permit to obtain the control of the following parameters: -

Traceability of raw materials and guarantee of legality Guarantee Savings in CO2 emissions Guarantee of product quality (UNI EN 14962)

The companies were interested in taking over the data provided by us by the materials made available and that they will be used for implementing the quality system within the logistic center. The steps for the system implementation will be set up by the AIEL and third certification subject with a independent laboratory certified, as following: 1. 2. 3. 4. 5. 6. 7. 8.

process initiation; initial assessment; system design; management’s training; documentation elaboration; implementation; pre-certification audit; assistance within the certification audit.

The feedback from companies was very positive. Both companies considered the technical support is really important for them to produce good quality wood based biofuels and they are interested in implementing the QA / QC system. AIEL realized an implementation of a Booklet with general information for QA/QC implementation. The handbook contains general information and easy access for all users, related to the implementation of quality assurance and quality control system, with clear references to technical standards for the determination of the quality of biofuels and certification schemes.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

As regards the voluntary network of wood biomass laboratories, 4 laboratories were identified by AIEL in Italy: The representative from Laboratorio Analisi Biocombustibili – Padova University – participated with AIEL team during the second project meeting in Padova, where explained the results obtained by biomass laboratory with the analysis carried out to members of the Aiel, biomass producers. AIEL has undertaken to ensure close collaboration with the laboratory analysis biofuels of Padova University, thanks to which it has entered into an agreement, so that the biomass producers can receive the certificate of conformity on biofuels wood products. This is a service that has been made available by AIEL.

4.6. Lessons learnt and special achievements BTC2 the project has allowed AIEL to implement the projects initiated with the first draft, and then you get to see a development of biomass logistic and trade centres in several locations across the country. Is fundamental to understand that the platform is the key point, around which it is possible to structure a system of quality assurance of supply of wood biofuels. The project has been very useful in several respects: Exchange of experience and opinions within the partnership Dissemination of good practice, which rarely are applied in Italy (contracting) Improved techniques for the production of solid biofuels Development of the concept of quality and the need to transfer knowledge to the market and manufacturers, so that they are able to meet the needs of the plants Implementation of certification schemes carried out by a third party guarantor of neutrality 56

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII The need to create networks between laboratories for the implementation of QA/QC system Of particular importance has been shown the introduction of QA / QC from small producers of biomass or for biomass producers generally using wood waste resulting from the production, for the production of energy. The testing laboratories which have been co-opted to collaborate, especially the laboratory from Padova University, transferred very useful information to the biomass producers and will be involved in the future activity of quality control in the production of wood biomass, as well as the certification biomass for energy use. AIEL was able to increase its network of contacts and knowledge, as well as to members, thanks to the development schemes put in place through the project The dissemination of the materials produced by AIEL took place both on the occasion of the organised events and within the meetings and workshope, where stakeholders and investors in wood energy chain take parts. The project promotion also took place within the National and International Symposiums, the fairs and other events, which ended up by the papers publication. The list of e-mails, which AIEL used to further the project results and materials published. Ideas and lessons learned during this project will continue to be disseminated and promoted in Italy in the period after its completion.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

5. Croatia (Partner4: North-West Croatia Regional Energy Agency) 5.1. Wood biomass situation The wood biomass market for energy purposes in Croatia is still in early stages of development except for logwood which has traditionally been used as a source for heating in households. One of the barriers for biomass market development is the lack of financial incentives for investing in wood pellet heating and biomass district heating, but in spite of that woodchips and pellets are gaining on its popularity based on accessibility of cheap biomass boilers from domestic production and development of local pellet production. Small scale combustion of biomass is by far the most extensive application of bioenergy in Croatia and currently the majority of fuelwood is consumed within the household sector primarily for space and water heating. In areas where the gas grid does not reach, and where there is no district heating system, fuelwood is the main source of primary energy used for heating purposes. Most of this wood is cut from forests especially for energy purposes. Apart from heating, a substantial amount of wood is also used for cooking. Large scale production of bioenergy takes place in the industry exclusively. Many companies in the wood industry have a substantial heat demand, in specific sawmills and furniture factories. Most of them produce their own heat, quite often from fossil fueled boiler systems but some also from their wood resources. A number of site visits to selected companies revealed that on average, boiler systems are old and worn down, and of outdated designs that would not likely comply to any emission standards. The wood residues used for heat generation are usually only a part of the available amounts. It appeared that many companies have a willingness and ability to invest in modern heating equipment, since the age of the existing equipment results in frequent breakdowns of boiler systems. For companies producing heat using fossil fuels, a switch to biomass is an obvious choice. In specific cases, the potential savings on fuel are enormous and a biomass boiler system could be paid back in less than 3 years. In order to gather relevant and up to date information regarding biomass supply and demand in Croatia the application of the WISDOM (Woodfuel Integrated Supply/Demant Overview Mapping) methodology developed by FAO was applied for Croatia within the FAO project TCP/CRO/3101 (A) Development of a sustainable charcoal industry. The application includes gathering of data regarding the biomass supply from the forestry sector (including wood-processing industries), and data on demand from the households and wood industry sector. Information regarding biomass heating plants within the woodprocessing industry was obtained through telephone surveys of all companies registered within the database of the Croatian Ministry of Regional Development, Forestry and Water Management. The collected data include relevant parameters (plant capacity, operating hours, wood consumption, etc) about 108 biomass heating plants. The total installed capacity of these heating plants amounts to 375.7 MW, whereas the estimated total wood consumption amounts to 1.227.938 m3/year. Figure 1 shows the distribution of industrial biomass heating plants in Croatia with five different categories regarding installed capacity.

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Figure Distribution of industrial biomass heating plants in Croatia

Currently in Croatia there are only two biomass plants utilised for the heating of buildings in operation (in the cities of Gospic and Ogulin) and both are owned and operated by the state forest management company Hrvatske Sume Ltd. However, there are several projects aiming to the building of biomass district heating plants for cities and municipalities which are under implementation phase. Exploitation technologies of wood biomass in Croatia are based on sustainability and can be divided in several working phases such as preliminary cuttings and thinnings. This kind of husbandry is in accordance with Forest Stewardship Council certificate (FSC) which is very important for the exportation of raw material to European Union market. Croatian wood biomass became strategic raw material in neighbour countries and some companies became bearers of long time contracts with heat plants in those countries and exploitation of forests because of that is rapidly growing. Woodchips production in Croatia is based on privately owned mobile woodchippers working on forest roads due to low manipulating and transport costs. Woodchips is then on site loaded to trailer trucks and exported to neighbour countries. There are seven private owned bigger chippers in Croatia, all using the same cutting technology (drum). Croatian pellet market represents the example of development of pellet market and production capacities without any incentive schemes. In terms of consumption it almost doesn’t exists, and current situation imply to lack of national policies, quality assurance and quality control. Even with these unfavourable conditions, pellet production in Croatia has experienced significant growth in the last couple of years with installed capacity of 210.000 tons/a in eight pellet production companies. Production of wood pellets started in a year 2006/07 as a result of fossil fuels prices growth and increased demand for pellets in EU market. Total installed production capacity has increased from 2006. to date as follows: • • • •

2006. : 0 t/y; 2007. : 17 500 t/y; 2008. : 140 500 t/y; 2009. : 212.100 t/y. 59

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Recent economic crisis had strong negative effects on wood biomass industry and resulted with no further investments in pellet production capacities. Of the total quantity of produced pellets approximately 99% is exported to EU market mostly in Slovenia, Italy and Austria. The current status of short rotation crops in Croatia is still at an early development phase. Considerable research activities have been undertaken by relevant institutions (Faculty of Forestry University of Zagreb, Forestry Institute and others) with the main objective to find genotypes which, with minimum nutrients, will produce the maximum quantity of biomass. This involves selecting, by means of the research, the most productive clone, giving maximum biomass production, and, thus, ensuring its participation in the primary energy consumption as well as in other forms of utilising the biomass of fast-growing forest trees. Taking into account the location and area of the Natura 2000 sites, as well as the areas unsuitable for harvesting due to various reasons, the technical potential for short rotation energy crops production in Croatia was estimated as following: • •

Forest area suitable for energy crops – a total of 46 850 ha was estimated to be suitable for SRC, producing in total 430 000 t DM/y Agricultural areas with moderately suitable soils and limited soil suitability – a total of 235 650 ha was estimated to be suitable for SRC, producing a total of 2 827 800 t DM/y

In spite of the considerable potential for short rotation energy crops production, currently a very small amount of the available area is utilised in Croatia. The issues and problems to be addressed in order to increase this production include a change in policy approach, especially aimed at small landowners, introduction of incentives and subsidies, lack of knowledge and experience in growing energy crops and generally a lack of cooperation between relevant stakeholders. In Croatia the State owns 78% of all forested land or 2 018 987 ha, while the rest 22% or 581 770 ha are in the private ownership (National Forestry Master Plan, 2006) (Figure 2). The Ministry of Agriculture, Forestry and Water Management is the administrative body responsible for the implementation of national forestry policy, while the state-owned company Hrvatske šume Ltd has a mandate to manage the state-owned forests according to the principals declared in the official documents that have to be approved by the Ministry and Government. Legal persons, other than Hrvatske šume Ltd, manage a minor area of state-owned forests.

Figure Share of state owned forests in total forest land area in Croatia

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

The Law on Forests (O.B. 140/05, 82/06, 129/08) lays down the criteria for forest stewardship, minimal level of education for people employed in forest management as well as obligation for Hrvatske šume Ltd to define long-term and short term management plans. Privately owned forests should comply with those long-term management plans, but this is not always the case. The reason could be found in the fact that private forest-holdings are highly fragmented: there are 599 056 forest owners with an average forest-holding of 0.97 hectares. Continuing, privately owned forests are often linked with the lack of professional knowledge in forest management and forest stewardship tradition, insufficient number of forestry associations, through which the forest-owners would exchange knowledge and experience, and coordinate forestry interventions. Their education about safety and proper procedures in forestry works is very low, usually they lack protective equipment and appropriate tools for performing forestry works and due to that, injuries and deaths are not uncommon. They usually have a strong motive to do works in their forests, related to fast profit and approximately 60% harvesting is illegal. That wood is mostly sold to the small local sawmills or for firewood by 20-30% prices lower than market prices. Finally considerable part of private forests is degraded and requires high investments for rehabilitation. Energy legislation package and corresponding rules and regulations adopted by Croatian Parliament in July 2001, have opened the doors for increased use of renewable energy in Croatia. Legislative framework defines relationships within the energy sector that includes the following: Energy Law, Law on Electricity Market, Law on Oil and Oil Derivatives Market, Law on Gas Market and Law on Regulation of Energy Activities, Law on Production, Distribution and Supply of Thermal Energy and Law on Biofuels for Transport. Energy Law, as the fundamental document, regulates the organisation and the institutions active in the field of energy efficiency and renewable energy sources; further, energy resource management, energy sector development planning; competition principles; sale of energy materials and products; technology transfer; principles of investment handling, promotion and protection; obligations of energy organisations and institutions; energy supply safety principles; price formation principles; technical conditions and regulations; energy supply conditions; electric energy and gas tariff system; surveillance over the energy sector, etc. Energy Law, for the first time, precisely articulated the positive attitude of the Republic of Croatia toward renewable energy sources, thus representing a small but significant shift in view of a positive message to the investors interested. The key step, as regards the legislative treatment of RES, was also included in the Law on Electricity Market that established the legislative obligation of electric energy purchase generated from renewable energy sources. Law on Electricity prescribes: the obligation to take over the total electricity produced from eligible producers, the obligation to submit the transmission system operator’s data to the market operator for the purpose of guarantee of origin of electricity, enter into contracts with all suppliers for the purpose of ensuring a minimum share of electricity produced from renewable energy sources and cogeneration. As it was said the wood biomass market for energy purposes in Croatia is still in early stages of development and the main barriers for further development are:  

Lack of national policies; Lack of incentive schemes and subsidies;

61

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII    

Lack of medium and large scale applications of bioenergy production, such as district heating, electricity generation and cogeneration; High number of forest owners with low average private forest holding; Socio-economic situation of forest owners; Lack of knowledge and technologies.

5.2. Wood biomass production For biomass producers and other involved target groups (entrepreneurs, forest owners, and local polititians) REGEA organized 6 workshops with demo events, 2 trainings and 4 match making events with the purpose of development of new business in rural areas. Special emphasis was given to forest owners and how to bring them to the market as biomass producers. The main topics of events were:   

Biomass potentials in region Modern technologies for biomass production Basics of biomass trade centers, heat contracting and quality

The most visited workshop and demo event was held as a part of International Furniture, Interior Decoration and Supporting Industry Fair – Ambienta on Zagreb fair in partnership with Hrvatske Sume Ltd, Ministry of Regional Development, Forestry and Water Management and Croatian Chamber of Economy. There were 116 participants, wood biomass producers, forest owners, forest engineers, distributors and producers of equipment. Demo event was organized by distributors and producers of mechanization and equipment as an exhibit of new wood biomass production machines and equipment. Each participant got their own sample of brochure “Roadmap for implementing standards” in national language, developed by Landwirtschaftskammer Steiermark as a part of IEE Woodheat solutions project. Beside presentations about new technologies in biomass production, heat contracting models and possibilities of biomass obtaining which were held by the representatives of REGEA, Hrvatske Sume LTD, and Faculty of Forestry, workshop also offered quality discussion among participants.

Fig Workshop at International Furniture, Interior Fig Demo event as a part of the workshop Decoration and Supporting Industry Fair – Ambienta

The best result of all the actions conducted within the objective of boosting wood biomass production is new business started by Kapela Cooppetative. It’s a production of woodchips for which this cooperative 62

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII is in the process of purchase of machinery. REGEA helped in all the process and applied on some grant calls for closing the financial construction.

5.3. Establishment of BLTC REGEA organized 3 workshops and 6 meetings with potential investors in order to establish new and innovative model to develop and organize local biomass supply – biomass trade and logistic centres. The main topics of events were:   

Biomass trade centres Quality provision for wood fuel supply, labelling and certification Basics about energy contracting

Establishment of BLTC was quite a challenge for Croatian circumstances: biomass market is still undeveloped, there is no good practice example of biomass trade and logistic centre establishment in Croatia, financial crisis was still largely present. Despite initial taughts, there were great interest for events and there were no problems in selection of potential investors for preparation of feasibility studies. One of the specifically successful event was a workshop that was a combination of open day, study tour and advanced workshop because of a large number of activities. Activities included presentation of production of wood chips and wood logs at small biomass trade company, machinery presentation in operation in the forest at two different locations, presentation of wood chips boiler, presentation of equipment and a workshop for forest owners and entrepreneurs.

Figure Combination of advanced workshop, open day and study tour

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Figure Combination of advanced workshop, open day and study tour

Figure Combination of advanced workshop, open day and study tour

Figure Combination of advanced workshop, open day and study tour

Figure Combination of advanced workshop, open day and study tour

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Figure Combination of advanced workshop, open day and study tour

REGEA made 3 feasibility studies for implementation of biomass trade centre for KAPELA cooperative, Craft FOREST and Hrvatske šume Ltd. All of the three parties were participating BTC2 events and were selected as potential investors. Craft FOREST is one of the largest producers of woodchips in Zagreb County which is then exported to the EU countries. The objective of the project is to reduce export of high quality wood chips which can be used in small and medium plants in Croatia. The plan is to start with the construction of biomass trade center in the second part of the 2014. and with full operation in 2015.

5.4. Energy contracting REGEA organized 2 workshops with the main topic biomass energy contracting in order to present this new innovative model to biomass market. Beside entrepreneurs, most interest was shown by a local government which owns a lot of public buildings heated by heating oil. Representatives of Zagreb and Karlovac Counties, which are one of the REGEAs founders, participated in BTC2 and saw opportunity to boost local biomass market and decrease heating costs in their public buildings. Shortly after The Green energy project has started. The aim of the project is to increase capacity and knowledge of private forest owners/entrepreneurs about biomass usage and new business possibilities in biomass market like heat contracting model. Main concept design is prepared for 30 objects for reconstruction of heating oil boilers and public procurement for selection of investors for reconstruction of boilers using biomass heat contracting model is expected in the beginning of 2015. REGEA also wanted to contribute to biomass market development with the pilot project through its daughter company REGEA invest. REGEA invest will install pellet boiler instead of oil boiler in a business center and will sell heat. The contracts are already signed and the installation of equipment will start in June 2014.

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Figure Workshop with energy contracting topic

5.5. QA/QC system Forest certification is a voluntary, market-based tool that supports responsible forest management which ensures that social, economic, ecological, cultural and spiritual needs of present and future generations are met. Certification provides forest owners and managers – families, communities and companies – with access to the global marketplace for certified products. Forest managers or owners who want to prove that their forest operation are socially beneficial and managed in an environmentally appropriate and economically viable manner can apply for forest management (FM) certification. The total forest and forest land area in the Republic of Croatia amounts to 2.688.687 ha, which is 47% of total land area of the country. The area of state property forests amounts to 2.106.917 ha and the majority of this is managed by the state owned company Hrvatske šume Ltd. The company employs about 10.000 workers, and is currently the only company in Croatia to have the FSC certificate in the Combined Forest Management and Chain of Custody category. The company has been actively involved in state owned forests certification from the year 2000, and the current certificate is valid from 2007 to 2012. According to the Croatian Law on forests, in order to ensure a sustainable forest management a unique management area is established which is afterwards divided on management units. Croatian forests are managed in accordance to the Forest management plan established for 10 years and the currently valid plan spans from 2006 to 2015. Based on the Forest management plan, the planned annual cut for 2011 by Hrvatske šume Ltd. amounts to approximately 2.95 million m3, which corresponds to the potential of total wood supply from certified forests. According to the available information on official website of FSC, in September 2011 in Croatia a total of 166 companies were registered to have a FSC certificate in the Chain of Custody category. The vast majority of these companies were registered within the wood-processing industry, such as sawmills, parquetted manufacturers, manufacturers of furniture, doors and windows and other wood products. According to the information on official website of PEFC, there are no companies in Croatia to have a PEFC certificate. Currently the most advanced fuel made from wood in Croatia regarding labeling/certification are wood pellets, mainly due to the fact that approximately 99% of the national production is exported mostly to EU countries. Due to this, Croatian pellet producers are forced to comply with relevant European and 66

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII national norms and quality standards of countries where they are exporting their pellets and several Croatian producers has obtained quality labels (e.g. Pellet Gold, ENPlus, DIN plus). The following table gives an overview of pellet producers in Croatia.

Table. Overview of pellet producers in Croatia Producer name

Installed capacity (t); Start-up year

Main market for produced pellets

Spačva

50 000; 2008. 7 500; 2007.

Germany, Austria, Italy

25 000; 2008. 20 000; 2008. 10 000; 2007. 28 000; 2008. 21 600; 2009. 50.000; 2009.

Slovenia, Austria, Italy

Drvenjača Viševicakomp Finvestcorp Mundus Viridis Energy pellets Gamauf Šišarka

Austria, Italy

Germany, Slovenia, Austria, Italy Italy Switzerland, Germany, Austria Various EU countries

Quality label

ENplus

DIN plus Pellet Gold

Various EU countries

The pellet market in Croatia is at a very low level of development and there are very few installed pellet boilers. The main barriers to a faster market development are the following:  

Lack of financial incentives for consumption/utilisation of pellets; Lack of legislative framework regarding production and consumption of pellets, especially quality control and quality assurance standards.

The market for firewood (logs) is much more developed and this has traditionally been used as a source for heat in households in rural parts of Croatia. However, the situation is similar regarding quality control and quality assurance standards as these are non-existant. Moreover, firewood is not the main product of the wood industry, but is primarily being produced by small local producers and forest owners. Taking into consideration the above, the main recommendations that reflect the views and perspectives of the industry regarding labelling/certification are focused on the development of the pellet market, and can be summarised as follows: 1. Strong regulation on quality requirements for pellet boilers, taking into account emissions, efficiency and safety. Low quality products can permanently damage the market, the environment and cause considerable problems; 67

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 2. Implementation of quality control mechanisms for pellets, establishment of national and international system for tracking to enable identification of pellet origin. Introduction of certification/guarantee that pellets are produced from sustainably managed forests.

5.6. Lessons learnt and special achievements The Biomass Trade Centre 2 project in these 3 years of conducting played an important role in Croatian biomass market. It introduced some new and innovative models for increasing the production and the use of energy from wood biomass that were not present at Croatian market. Firstly, the great importance was given to education of private forest owners and entrepreneurs. Modern technologies of biomass production, potentials of biomass in the region, biomass trade and logistic centres, biomass heat contracting model, quality control and quality assurance were presented at workshops and trainings. Some great initiatives have started from those education events such as wood chips production by KAPELA cooperative. KAPELA got all the technical advices from REGEA and help in the call for grants. Today they are the first Cooperative in Croatia that is producing the woodchips. Also the important role of the project was education of local government that is a huge consumer of heating oil. REGEA’s founders, Zagreb County and Karlovac County got interested in implementation of biomass heat contracting model in their public buildings so main concept design was prepared for 30 objects for reconstruction of heating oil boilers. Public procurement for selection of investors for reconstruction of boilers using biomass heat contracting model is expected in the beginning of 2015. But the first biomass heat contracting project is already in implementation phase, REGEAs daughter company REGEA Invest signed the contract for selling biomass heat. REGEA Invest will install pellet boiler instead of an oil boiler in a business centre. With this pilot project REGEA wanted to contribute to development of Croatian biomass market, especially heat contracting market which is still completely undeveloped. Biomass and logistic trade centre model of selling high quality wood is still unknown and unadopted model in Croatian market although there are some great initiatives and is expected to have first centre in full operation in 2015. To boost development of biomass trade and logistic centres in Croatia there are some major barriers that need to be solved for further development:      

Lack of national policies; Lack of incentive schemes and subsidies; Lack of medium and large scale applications of bioenergy production, such as district heating, electricity generation and cogeneration; High number of forest owners with low average private forest holding; Socio-economic situation of forest owners; Lack of knowledge and technologies.

The projects that recently started; The Green energy which will promote energy contracting and Dvorac Bračak with biomass academy, will continue with the implementation of education activities that started within BTC2 project as they showed to be crucial for solving

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6. Spain (Partner 6: Spanish Bioenergy Association) 6.1. Wood biomass situation in Spain According to objectives settled in the Spanish REAP, Spain should be consuming 9 to 11 million tons per year of biomass for heating purposes by 2020. An affordable goal, taking into account all Spanish biomass that every year remains in the forests (it is being used only 29% of the annual available biomass stock for all industrial uses of wood).

In Spain, the consumption trend of domestic solid biofuels is clearly going up. AVEBIOM, the Spanish biomass association, has estimated that the consumption for 2013 in around 350.000 tons of pellets. It’s very probable that the share of exported pellets will decrease as internal demand is growing because producers get more benefits when they sell in the local market (i.e. there is a Spanish producer that during 2012 they exported about 6 vessels (around 24.000 tons) for electric utilities in Belgium but this 2013 will only make 1).

The pellet production figures are accordingly increasing but there is still a high percentage (around 4050%) that is being exported mainly to France and Italy around 60.000 tons. Nowadays Spanish pelletizers are producing around 350.000 and to cover the full demand Spain had to import about 80.000 - 100.000 tons from Portugal. We can say Spain has become this year a net importer of wood pellet.

There are pellet producers that could have produced more this year 2013 but they didn’t because in certain areas there is a lack of raw material. This lack of raw material is in only in the market, not in the forest. Due to the crisis, as there was no need for construction wood and wood panel sector was almost closed for several years there are not enough cuttings to supply all the demand because there was an increase for biomass use but also wood panel sector reactivated some months ago and they are starting to buy big wood quantities. In the other side, the woody biomass potential in the Spanish forest has almost duplicated in 10 years, as per the IFN (National Forestry Inventory published by the govern), Spain accumulated wood stock has growth from 594 million of m3 o in 1996 to 921 million of m3 in 2009 (64% increment) which means an average of 35% of the annual growth (quite low compared to the European which is 61%). By cutting and using these 12 million m3/year of wood, around 12.000 jobs could be created only in the work of collecting, processing and distribution of fuel. It also would prevent the importation of more than 25 million barrels of oil (over 1.500 billion €/year). It also would avoid the emission into the atmosphere of more than 9 million tons of CO2 a year.

Also, the last year poor olive stones season, biomass very much used to substitute the wood pellet in domestic boilers and stoves in the whole Mediterranean area, contributed to this increase of the wood pellet demand. This new season is expected (the figures are about to be known) to be quite better but not extraordinary so there won’t be any descend in the wood pellet demand.

69

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII Focusing in wood chips market, the trend is also the same and it has gained terrain in the thermal market lately is the wood chips. In the beginning of 2011 there were only 5 Biomass Trade Centers (BTC) where wood chips are sieved and the moisture content is lowered to achieving an adequate quality to a domestic – commercial boiler. The BTCs present in 2011 shown in the map are: Lozoyuela (Madrid), Nava (Asturias), Trasmiras (showed as Foresa in Galicia), Foresa again in Extremadura (both BTCs from Foresa started in 2011) and Factor Verde (Guadalajara).

Also there are small-scale initiatives for producing wood chips for thermal purposes with around 1,000 chips tns mobilization capacity. In general, large producers or suppliers of Wood chips have a capacity ranging from 20,000 to 30,000 tn.

Figure 1. Biomass Trade Centers working in 2011. Source: AVEBIOM 2013

AVEBIOM has been working in the consortium of the IEE project Biomass Trade Centre II promoting this model of business during the past 3 years. In part thanks to the results of this project, and in part due to the market circumstances, which started to show an upward trend these last years (raise in the pellet price and increase of the biomass demand basically). Nowadays, there are around 10 more BTCs and 2 or 3 more in study.

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Figure 2. Biomass Trade Centers in project or in construction. Source: AVEBIOM 2013

The ex-works price (EXW) of thermal wood chips for domestic use, i.e. G30 or G50 calibrated with a moisture content around 20 - 25%, varies between 80 and 100 €/tn. depending on the supplier, humidity and particle size. In general, a wood chip, is more expensive as the particle size is smaller (a chip G30 will be more expensive because it involves more work for the mills) and the moisture content is lower (since it needs more energy to lose moisture or more drying time). Obviously the price also depends on the provider and the distance travelled.

Wood chips sold for power generation or industrial boilers can have two origins, sawmills and forest wood chips that comes directly from the selviculture treatments on the mountain. Prices at the factory (or farm) of these chips vary widely with the quality and humidity. The quality main factors are usually the particle size, species and if it’s free of bark, leaves or needles. Moisture is also another important factor that buyers greatly penalize in price terms. Given these factors, prices may vary between 25-30 € / ton of a wood chip uncalibrated, with high humidity (40%) to € 60 for a dry and elaborate chip.

The optimal distance of transportation is between 30-50 km, especially when biomass is low density and truck is transporting relatively small quantities 100 – 2000 kW). BAFA the federal office of Economics and Export Control has a major focus on implementing the programme to promote renewable energies of the Federal Environmental Ministry. It is BAFA`s task to give grants and promote the increasing use of renewable energies for small units (< 100 kW). BAFA also runs a programme of grants for »Local consultations to save energy« and they promote projects of the newly founded Deutsche Energie Agentur GmbH (DenA) by granting federal subsidies. Another source for credit financing in the field of demonstration and innovations concerning renewables and energy saving is the BMU (ministry for the environment). The BMELV (ministry for nutrition, agriculture and consumer protection) runs a program for research, developement and demonstration events on the field of renewables since 2008. Some programs are driven by the FNR (agency for renewable resources), the IEKP (climate protection program), and others of the BMELV. The modalities of promotion cover a wide range from information to trainings, from research to policy making and from expertise to co-financing. In Bavaria we have two important institutions dealing with renewables, their promotion, information and training. They provide reports on the state of the art and developments in different branches of renewables. Both CARMEN and the TFZ (center for technology promotion) do inform and work with data from all over Germany. The bavarian state ministry for food, agriculture and forestry is providing expertize spread all over the country through biomass consultants. The LWF (bavarian state institute of forestry) is maintaining a data base of forest enterprises envolved with energy-wood harvesting which is very helpfull for forest owner who intend to start a wood-biomass business. As concerning environmental limitations in Germany there are lots of constraints. There is a no harvest policy for protected areas as well as for steep slopes, no use of stumps is permitted, site specific restrictions on use of harvest residues are in work at LWF. As new areas of protection for biodiversity and nature conservation were established, more surfaces will be managed in the mood of “close to nature” silviculture or will not be harvested any more. This is the reason, we rather tend to a low mobilization scenario for the future. As an orientation we are adding an overview for the development of prices of wood biomass products in comparison to fossil energy products for the last years as well as within the project lifespan. One can 165

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII notice a slight drop down of the oil prices after 2012, a stabilisation of gas prices at a high level, a substantial increase of pellet prices and quite steady prices for chips.

Figure 3: developement of prices for wood chips (water content 20), wood pellets, heating oil and natural gas till the project start( source: CARMEN 2011)

In the forest strategy 2020 document released by the German government chapter 3.3 is dealing with raw materials, utilization and efficiency. The development scenarios are depicting that there is a need for further improvement and implementation of efficient small boilers and small plants, continuous promotion of heat and power coupling as well as an improvement of the frame conditions of the cluster forestry and wood. Landscaping residues must take a much higher share in the supply of plants and the biomass production and material must be fully implemented in the certification systems PEFC and FSC for better marketing chances. Last reported development tendencies are suggesting new restrictions introduced by FSC in Baden-Würtemberg. This can inhibit the energy wood production and endangers the small contractors too. All these facts point out the need of mobilization and the efforts that have to be done in the development and efficiency of mobilization instruments at the level of small private forests but also of small contractors and businesses in the wood-bioenergy sector.

11.2.

Wood biomass production

Prior to promotion and knowledge dissemination activities in the project, we prepared a catalogue of forestry companies and biomass producers as well as biomass dealers of the region. All over Bavaria companies, contractors and dealers which hold certificates were detected and classified according to the postal code and their main business. This classification facilitates the use of the catalogue. Everyone can very easily find the right partner in biomass business regardless weather they search as provider, supplier or as a costumer. According to the filter applied we listed 18 biomass trade centers, 37 pellet/ briquette producers, 55 wood chip producers and 94 wood log producers. Of course most of them do 166

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII not rely on one product only but this is their main business. The catalogue was disseminated at certain events and we got good feedback, as it was called useful and easy to handle. In this project biomass producers where involved in activities concentrating on the information transfer about new harvesting technologies for energy wood, trainings towards the production of energy wood and match making possibilities for participants.

Fig.: Smallwood harvesting with the energy-wood processor head Bracke 16.a (Tannheim-Schaessberg 17.04.2013)

Along three workshops combined with demo-events 67 participants from different forest size owners representing almost 70.000 ha had the opportunity to meet well established forest companies. They got information on important facts to be considered when estimating or calculating the biomass potential as a basic for the starting of energy wood business. Biomass production technologies discussed gave information about machinery, development of new technics, cost of harvesting and hauling as well as maintenance of the evolved machines. Another important aspect presented at the workshops was the logistic part of the biomass production as well as the distribution through logistic and trade centers. Introduction to quality matters, standards and systems as a part of the biomass production chain was provided. New business models and selling of heat through different contracting modalities were presented and discussed. In the afternoon sessions the participants got the chance to join live activity of forest machinery in action. Many questions occurred when pointing out the efficiency, productivity and machine costs. At these events we asked the participants to give us a feedback by filling in the prepared questionnaires. This was not a raving success as we had to bag for this action and got only 25 filled in questioners we could enter for an evaluation. Only 39 of the interviewed see themselves as energy wood producers, 25 of them want to do more and increase their energy wood production. When asked whether they plan new business lines on energy wood only 3 are positive. 4 people said they need more information while 40 came only for education and training. 8 need more information about investments, 14 were chipper owners, 5 were holding harvesters but only 4 declared to have storage space. 5 people say that the workshop was useful while 15 say it was very useful and 36 people, which is somewhat more than the half said they want further information. Despite of some inconsistency in the answers we got the impression that the workshops were welcome and useful for the envisaged target groups. Most of the participants declared that they have to think about the involvement with contractors providing services in the biomass business. 167

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Fig.: 6 Training group getting first explanations on energy wood harvesting (Wasserburg 11.2013)

Trainings were started after we had focused on the people which were ready and declared their willingness to join the project. These were mainly members of the FOA Eichstätt, the FOA WeißenburgPappenheim and the Nassl company. The trainings focused on the production of energy wood, the harvesting techniques, short rotation crops and the improvement of the entire supply chain. Maters of sustainability, quality of raw woody material for energy purposes, handling of raw material, pre-drying and drying activities as well as storage and transportation problems were pointed out. The participants got the opportunity to see stands, plantations and life material. Discussions took place in the field as well as on storage and drying places but also inside. Special emphasis was given to the quality demands of the raw material for the production and selling of high quality chips and split logs, the so called premium quality wood energy assortments. We had 169 participants at these events but we only got 22 filled in questioners we could enter for an evaluation. This was due to the fact that the trainings were attended partly by people who already attended the workshops and demo events and those did not fill in new questioners. The forest area represented by the evaluation is of 1.030 ha. This shows very clear that the holders of bigger surfaces did not attend these trainings. Only 13 of the interviewed see themselves as energy wood producers, 4 of them want to do more and increase their energy wood production. When asked whether they plan new business lines on energy wood only 4 are positive. 4 people said they need more information while 21 came only for education and training. 4 need more information about investments, no chipper owners, none holding harvesters but some declared to have storage space. 15 people say that the workshop was useful while 7 say it was very useful and 8 people said they want further info. Despite of the normal inconsistency in the answers we got good feedback, the workshops were welcome and useful for the envisaged target groups. Two match making events were organized with the FOA Eichstätt and Pappenheim-Weißenburg. They started with a presentation of data for firing places in the district of Weißenburg, biomass production of the two FOA`s, biomass logistic and trade centres already existing in the region and potentials for the extension, diversification of products and the cooperation between the two trade centres. Information was given for the opportunity to sell heat, contracting models as new business for forest owners. Special emphasis was given to the quality standards for wood fuels and the opportunity to collaborate with a specialized laboratory for wood fuels for the implementation of quality management. In the afternoon the storage place of BLTC-Eichstätt was visited and the possibilities for cooperation with FOAPappenheim-Weißenburg were discussed. 168

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII The second event was organized with the district office Weißenburg, mayors of the region, contractors, carpenters, chimney sweepers and the FOA Pappenheim-Weißenburg. We started with data for firing places in the district of Weißenburg, biomass production of the FOA, presentation of the wood trade centre already existing in Ellingen, potentials for the extension, diversification of products. Information was given for the opportunity to sell heat, contracting models as new business for forest owners. Special emphasis was given to the quality standards for wood fuels and the opportunity to collaborate with a specialized laboratory for wood fuels which facilitates the implementation of quality management. The QA/QC system implemented was presented to the district officers and the labeling process for the label “Edition Altmühl-Franken” was started. At both events the feedback was good as pparticipants declared their goodwill to cooperate and to develop a labelling system open to other PEFC-certified regional forest owners on the basis of the common QA/QC-system as well as feasibility studies for the development of their business models. The labelling process went on and we are expecting the closure of the procedure in 2014.

11.3.

Establishment of BLTC

When we started the project, despite the fact that we had good meetings and informations about the tasks, we had to try to convince FOA`s, township leaders, villages and municipalities and some contractors to participate to the project. This were lots of time and energy consuming one to one meetings. For the most of them we had to go out which was a real big effort. The meetings were organised with the advisors and managing directors of the FOAs in Bavaria. It started with discussions of data for biomass potentials, biomass production technologies for different types and stages of forest stands, biomass logistic and trade centres already existing in the region and potentials for new establishments. Discussions concerning the opportunity to sell heat, contracting models as new business for forest owners have been held. Checked the implementation and awareness of quality standards for wood fuels and discussed the opportunity to collaborate with a specialized laboratory for wood fuels for the implementation of quality management. We checked whether there is interest in further development of woody biomass business. A huge number of 55 people, almost all of them advisors or leading staff in the FOAs were contacted and we had to go out to them in most of the cases. They were not ready to fill in our questioners and to sign participant’s lists for whatever reason. Participants showed much of an interest for the topic but when it came to planning and organising of events most of them had to discuss the matter with their boards and some did not react at all. Many of them got negative reaction after they presented the ideas to the managing directors or to the boards and presidents. Few were ready to schedule some events, but before we had fixed dates they draw back, which was really frustrating. As mentioned above in Bavaria we have at least 18 good functioning biomass trade and logistic centers. So we concentrated our activities to already existing initiatives of trading with biomass products in order to help them in their further development. Therfore we performed advanced workshops with interested forest owners and biomass producers. The main focus of this workshops was on the production and trading of high quality chips and split logs. All aspects of quality provision in the business were discussed. Technological, economical and sustainbility aspects had to be mentioned, possibilities of extension, the capture of new markets and the marketing techniques of well established BLTC`s have put the frame for these workshops. The advantages, technical and economic aspects of contracting 169

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII models were exemplified and special emphasis was given to quality provision for wood fuel supply, certification, wood biomass laboratories labelling and the technical specifications of EU normatives. After we have found an agreement for joint activities with the FOA Eichstätt and the FOA WeißenburgPappenheim as well as the Nassl Company we were able to organise the planned series of advanced workshops. They all were scheduled after study tours so there was enough background for discussions on the main topics: info to the energy wood production chain, quality of woodchips, training on quality tasks. Presentation and discussion on data for biomass potentials and the estimation of the reliable potential, sustainability, biomass production technologies, development of the own biomass enterprise and potentials for new constructions was performed. This again opened the field for feasibility studies at the three organisations. They were selected for the introduction of their own QA/QC-systems which were developed together with TUM. Of course quality issues were always an important part of the workshops with hot discussion potential. At these workshops we have had good feedback as the participants were already familiar with the topic. Due to this fact we only got 59 participants, but these were interested once. Along all possible tasks, questions and discussions concerning the further development and promotion of woody biomass for energy purposes dominated the workshops. We were not able to give satisfactory answers in all of the cases because of the political and economic framework presented above. However the participants will stay with the project and all of them have given us letters of commitment as they will invest in the development of their energy wood and contracting business. The two planned study tours could be organized and took place in 2013 and due to a longer period of illness 2014. The tours had a clear focus on new investments towards BLTC`s or the development of BTLC`s already existing and other forms of energy wood business at the local and regional level. But also much emphasis was put on energy concepts and internal power supply. New ideas for business concepts in BLTCs and trials like heat pipe reactors for wood gasification were presented and good information about their future was given. The presented businesses all work with industrial debris from saw mills too. This way they can influence their high quality products and give trust to sustainability thoughts. As in the case of the workshops we got good feedback but the disposition to fill in our questioners was not as high as we wished it to be. So we got only 41 questioners with useable information from the 95 participants on the study tours. 20 of them are energy wood producers, 2 want to expand and plan new business the next years, 3 need more info, 27 have been there for education and training, 15 for information on investments; 2 were chipper owners and one has a harvester; 11 do hold storage capacities; half of them say that the study tours were very useful.

Fig.: Study tour of the FOA Weißenburg-Pappenheim. Energy management andproduction of energy wood in the own plant; Ziegler, Plößberg 02.2014

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII As mentioned above we started feasibility studies with three partners. Two of them with the FOA Eichstätt and FOA Weißenburg-Pappenheim came to a final stage. That one with the Nassl company was not completed after they got the result of an assessment for their planned small heating grid in Deutenhofen which clearly showed that the heat demand during summer time would be much too low. A proper part of this is caused by the fact that housing facilities have to be insulated the next years and partly of course by the climate change effects. The feasibility study for the FOA Eichstätt deals with the development of the existing energy yard towards a BLTC based on the wood chip business they already started. The development of the yard will include construction matters as well as the establishment of a small own laboratory for the quality control matters. They will try to establish an offer which includes at least three qualities of chips, a certain amount of split logs and they envisage also to start dealing with pellets. This is a totally new attempt which will go hand in hand with the construction of a new branch office. The FOA is at the point of negotiations with the forest authorities to get substantial promotion for their attempt. The active phase is planned to start in late 2014. In the case of FOA Weißenburg-Pappenheim the feasibility study deals with the development of the existing wood energy yard towards a BLTC based on marketing of split logs which already was started. The existing sheltered storage as a basic will be the cornerstone for the planned expansion. A tarred storage and manipulation area as well as product boxes for different assortments are envisaged. Machinery for manipulation, sieving drum and a weighbridge are parts of the planned investment package. The offer will include assortments of split logs, pellets and a certain amount of wood chips. Furthermore they will try to enter the market with new packed forms of split logs for the hardware stores, camping and recreation facilities. There is some discussion whether the yard should move to a more convenient place; never the less the active phase is planned for late 2014.

11.4.

Energy contracting

As already mentioned in chapter3 instead of 2 we had to organize 15 one to one meetings in order to try to convince people to start with some activity. Out of these activities only 5 showed up to be useful as the feedback was generally week or in many cases there was no feedback at all. This situation occurred as an effect of the political development in the period 2012 to 2014. We had several ministers of the environment changed and almost no ruling or support was possible as the ministry of economics had to come to an agreement with the ministry of the environment. In this situation there was a downright uncertainty concerning further development of renewables and promotion of biomass for energetic use. After we have found an agreement for joint activities with the FOA Eichstätt and the FOA WeißenburgPappenheim as well as the Nassl Company we were able to organise the planned series of workshops dealing with energy contracting as well as quality demands and sustainability. They all were scheduled after study tours so there was enough background for discussions on the main topics: info to the energy wood production chain, quality of woodchips, training on quality tasks. Presentation and discussion on data for biomass potentials, sustainability, biomass production technologies, development of the own biomass enterprise and potentials for new constructions was performed. This again opened the field for feasibility studies at the three organisations.

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Fig.: 8 storage shelter of the Nassl company. Location where one of the workshops was held with the company members and their suppliers; Deutenhofen 2014

They were selected for the introduction of their own QA/QC-systems which were developed together with TUM. Of course quality issues were always an important part of the workshops with hot discussion potential. One special workshop was dealing with labelling. There were participants from the FOA WeißenburgPappenheim, mayors, forest authorities, carpenters, architects and climate and energy managers from the district authority. The new participants were integrated to the already started labeling process for the label “Edition Altmühl-Franken”. At these workshops we have had good feedback as the participants were already familiar with the topic. Due to this fact we got 86 participants, but as they already gave their data and input on former study tours only one questioner was filled in. The new represented forest area was of 5,5 ha, the wood chip amount produced by the year is of ap. 15.000 bulk cubic meters, they already sell energy wood, heat and are energy wood producers.

Fig.: 9 storage shelter of the FOA Eichstätt. At this location one of the workshops was performed with the FOA members and their costumers; Eichstätt 04. 2014

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII They needed professional help, education and training. They are running their own boiler of 50 kWh, own chippers, have storage capacity of 5000 cubic meters. They said the workshop was very useful and they want more information. Along all possible tasks, questions and discussions concerning the further development and promotion of woody biomass for energy purposes dominated the workshops. We were not able to give satisfactory answers in all of the cases because of the political and economic framework presented above. However the participants will stay with the projects initiated by their associations and all of them have given us letters of commitment as they will invest in the development of their energy wood and contracting business. The two planned study tours could be organized and took place in 2013 and due to a longer period of illness 2014. The tours had a clear focus on energy wood business at the local and regional level. But also much emphasis was put on energy concepts and internal power supply. New ideas for business concepts in BLTCs and trials like heat pipe reactors for wood gasification were presented and good information about their future was given. The presented businesses all work with industrial debris from saw mills too. This way they can influence their high quality products and give trust to sustainability thoughts.

Fig.: 10 storage shelter of the BLTC Achental with the Eichstätt group on their study tour 11.2013.

As in the case of the workshops we got good feedback but the disposition to fill in our questioners was not as high as we wished it to be. So we got only 41 questioners with useable information from the 95 participants on the study tours. The covered forest area is about 7.270 ha. 30 participants are energy wood producers, 5 want to expand and plan new business the next years, 6 need more info, 43 have been there for education and training, 18 for information on investments; 2 were chipper owners and one has a harvester; 21 do hold storage capacities; 20 of them say that the study tours were very useful and 32 say it was useful.

Fig.: 11 FOA. Weißenburg-Pappenheim group on their study tour to Berching; Plankstetten cloister 02.2014.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 11.5.

QA/QC system

We were lucky to find a good, reliable partner with the laboratory of: ASG Analytik-Sevice Gesellschaft mbH, www.asg-analytik.de They were recommended to us by the TFZ-Straubing and were ready after a one to one meeting for a project cooperation as a subcontractor. They are certified and accredited for the analysis of fuels of all kind. ASG gave important input to the development of the individual quality improvement programs for our project partners. They also helped us to install a feasible control and implementation system which we proposed to the FOA`s Eichstätt and Weißenburg-Pappenheim as well as the Nassl company. As important step within the project activities we implemented QA/QC-systems for small biomass producers and suppliers at the FOA Eichstätt, the FOA Weißenburg-Pappenheim and the Nassl-company. The systems were developed and introduced together with the ASG-laboratory and the FOA-managers to fit and meet the special situation of the specific group. Due to the manifested approach the implementation was smooth and easy done for the three partners within the year 2013. The main steps of the implementation at FOA Eichstätt were: -

development of specific problem based implementation plan; construction and integration of a small laboratory for wood chips calibration curve for a water content measuring device; procurement and preparation of devices for chip dimension tests(sieving buckets); intended – procurement of a drying oven; 2 laboratory tests/year with ASG.

At the FOA Weißenburg-Pappenheim main implementation steps were: -

development of a specific product based implementation plan; continuous quality improvement trials by testing and introduction of debarking and sieving machinery; great efforts to improve the presentation of products at the yard; continuous observance of the drying offerings on the market; intended new packing alternatives

At the Nassl-company the implementation steps were: -

development of specific problem based implementation plan; procurement of a water content measuring device; procurement and preparation of devices for chip dimension tests(sieving buckets); intended – procurement of a drying oven; 2 laboratory tests/year with ASG.

We got good feedback from all three parties involved. At all of them the QA/QC-system is already really helpful.

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Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII FOA Eichstätt stated: - only with a QA/QC-System working quality requirements can be fulfilled and held on the long-term. They will use the system because the development of the BLTC and the implementation and use of QA/QC-system is part of the feasibility study and financing- as well as promotion-plan. FOA Weißenburg-Pappenheim stated: - an established QA/QC-system implemented, assures working and products quality on the long term. It is an instrument to keep energy wood supply sustainable. They will use the system as it helps them with their development plans and already was very helpful in the application for the regional labelling system. It actually is the basis for the implementation of the split logs within the regional label “Edition Altmühl-Franken” in July 2014. Nassl-company stated: - only with a QA/QC-System working and product quality requirements can be held on a constant and sustainable level. Achievable prices for quality products have proven to be constantly higher. Assured costumers can be held by constant quality. They will use the system because the development of their business and the implementation and use of the QA/QC-system is part of the feasibility study and financing- as well as promotion-plan.

11.6.

Lessons learnt and special achievements

The most important lesson we learned was not to rely on the statements and promises made and given by the interviewed people prior to the start of the project. As in Germany there was no forerunner project we had to do a lot of field work when trying to convince forest owners to get involved with the project. In the organized one to one meetings the participants showed their interest but when it came to proposals for activities all said they have to have to check with their presidents and leading boards prior to engage themselves. The decisions of the boards in most of the cases were negative due to the political and regulations framework as they stated. Uncertainties in the promotion and subsidies to be expected from the society were a major reason for the sluggish demand for our project offers. As already mentioned elsewhere, repeated changes in the ministries, divided decision competences in the field of renewable energy and several ministers at the national level within the project running time, pointed out to be detrimental to our challenging attempts. Uncertainty and the lack of reliable targets and directives as well as rumors that were afloat lead to more questions than we could answer. At the end of 2013 there were political statements already which insinuated a drastic reduction in the promotion of biomass generated energy in total. Additionally the focus was strictly oriented to power and almost nobody talked of heat and cooling systems any more. In this situation we do understand very well that almost nobody was ready to think about new investments in BLTC-related tasks. Another important lesson learned was that modern communication methods do not really work when dealing with forest owners with small to medium sized forest areas. Contacts by phone and e-mail were started by us, but when it came to the delivery of data or to the finding of target dates this did not work. Very often we had to go out to the clients and partners even for some minor problems which in our opinion could have been concluded easily by phone or e-mail. We had to accept the arguments we heard many times in the meetings with local politicians and their technical officers or the energy consultants of municipalities. The natural gas grid in Germany is very dense and evenly spread. At the moment prices for natural gas and the investments occurring with the development of heating boilers and heating networks are much more interesting than those of biomass projects. 175

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII We were not able to convince politicians, their advisors as well as their consultants and technical officers to invest in biomass based heating and cooling systems without exception due to much higher current investment costs. When dealing with certification and labeling purposes small steps have to be planned with the involved parties. We were very well prepared for the meetings but as we had to notice authorities as well as mayors, municipalities are confronted with totally new matters and aspects when they have to decide. From our efforts and activities while introducing and then implementing of the feasibility studies we got feedback from the partners. The findings can stand as points of the chapter lessons learned. 



There is a need for improvement of quality in the chips business. There is a need for continuous dialog with the holders of small to medium boilers. Changing demands for divers’ qualities is one of the challenges. Certification and labelling would help the marketing attempts. The improvement of quality in the split log business gives better opportunities on the market. In the split-log production the debarking and sieving processes were tested and gave good results. There is a need for continuous efforts for certification and labelling. This will open the regional market of hardware and leisure stores.

We are aware that the most important inhibiting factor for the development of small businesses in the wood bioenergy sector is the political and administrative framework. If the amendment of the renewable energy law will not take in to consideration that the heating and cooling efforts are of the same importance as the power purposes and that within the biomass energy sector wood energy has to have a sure and steady place we will not make bigger steps in the mobilization of woody biomass from small area forest owners. The biomass sector has to be given the same attention like wind- and sun generated energy as none of these branches standing alone will assure our future energy supply.

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12. List of deliverables All deliverables listed below are available on: www.biomasstradecentre2.e 1.

2.

3.

4.

5.

6. 7. 8.

9. 10. 11.

State-of-the-art of wood biomass production in the 9 participating countries (Austria, Croatia, Germany, Greece, Ireland, Italy, Romania, Slovenia and Spain) Catalogues of forestry companies and biomass producers from 9 participating countries or regions are prepared and published in different languages Technical backgrounds for advanced techniques and technologies in biomass production: This document was prepared by partners from different participating countries and represents the collection of available information’s about wood biomass production chains. Different sources used in preparation of this document are listed at the end of each chapter. Biofuel handbook: English, Italian and Slovenian version of Biofuel handbook was prepared during the BiomassTradeCentres project. We think that this handbook is crucial for technical support and professional advice for all interested in wood biomass production, storage, trade and use. Now it is available also in Catalan, German, Romanian, Spanish, Greek and Croatian languages. Biomass trade centres generic guidelines were prepared during the BiomassTradeCentres project. Document is crucial for the establishment of BLTCs; Now it is available also in Catalan, German, Romanian, Spanish, Greek and Croatian languages. Technical paper on Energy contracting: it presents a readymade business model for energy contracting that was used to promote energy contracting. An overview of Lessons learnt from the existing biomass contracting and a list of recommendation to avoid the same mistakes will be published. Energy contracting booklet: it was prepared by Styrian Chamber of Agriculture and Forestry and it was translated to German, English, Slovenian, Catalan, Romanian, Spanish, Greek and Croatian language. State-of-the-art regarding quality certification schemes and labelling: Reports were prepared by partners and they are available in national languages or in English. Good practice examples of QA/QC implementation and/or labelling of wood: 23 good practice examples are presented. Quality control and quality assurance (QA/QC) system to guarantee the solid biofuel quality through the whole supply chain, from the origin to the delivery of the solid biofuel and provide adequate confidence was prepared and translated to national languages (Austria, Croatia, Germany, Greece, Ireland, Italy, Romania, Slovenia and Spain) 177

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII 12.

The Biomass manual - Quality assurance system and quality control measures: it was prepared by Styrian Chamber of Agriculture and Forestry and it was translated to German, English, Slovenian, Catalan, Romanian, Spanish, Greek and Croatian language. 13. Booklet: “Quality Fuels for Everyone - Useful Information about Heating with Wood”: it was prepared by Styrian Chamber of Agriculture and Forestry and is available in German, English, Slovenian, Catalan, Romanian, Spanish, Greek and Croatian language. 14. A voluntary network of wood biomass laboratories from all participating countries and regions: 23 biomass laboratories are presented in this network. 15. Reports on wood fuel prices monitoring: 6 reports on wood fuel prices in all participating countries are published.

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13. Authors of this report: Partic N°

Participant name

CO 1

Slovenian Forestry Institute

CB 2 CB 3 CB 4

Styrian Chamber of Agriculture and Forestry Italian Agriforestry Energy Association North-West Croatia Regional Energy Agency

CB 5

Forest Sciences Center of Catalonia (Centre Tecnologic Forestal de Catalunya)

CB 6

Spanish Bioenergy Association (Asociación Española de Valorización Energética de la Biomasa)

CB 7 CB 8 CB 9 CB 10 CB 11

Authors

Waldverband Steiermark GmbH Styrian Forest Owners Association Centre for Renewable Energy Sources and Saving S.C. I.C.P.E. BISTRITA S.A. Irish Bioenergy Association Technische Universität München

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Dr. Nike Krajnc, dr. peter Prislan, Tina Jemec, Matevž Triplat Metschina Christian, Solar Tanja Massimo Negrin, Valter Francescato Karlo Rajic Boglio, Denis; Cases, Carme; Font, Susanna; Garcia, Montse; Gaspà, Isart; Navarro, Pere; Riu, Dúnia; Rodriguez, Judit Martín Larrañaga, Marcos; Mira Uguina, Alicia; Ramos Llorente, Juan Jesús; Rodero Masdemont, Pablo DI Bernd Poinsitt, Martin Gaber Ioannis Eleftheriadis Mihaela Begea, Corina Berkesy Noel Gavingen, Tom Bruton Dr. Johann Kremer

Development of biomass trade and logistics centres for sustainable mobilization of local wood biomass resources - BiomassTradeCentreII

Grant agreement no. IEE/10/115/SI2.591387 Full title of the project: Development of biomass trade and logistics centres for sustainable mobilisation of local wood biomass resources

Acronym of the project: BiomassTradeCentreII Intelligent Energy – Europe (IEE) Project duration:

from 01/05/2011 to 30/04/2014

Project coordinator: Dr Nike Krajnc Slovenian Forestry Institute, Večna pot 2, SI-1000 Ljubljana [email protected]; tel: +38612007817; fax: +386122573589

Project website: http://www.biomasstradecentre2.eu

Disclamer: The sole responsibility for the content of this report lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein. 180