Study for Cogeneration Project with Herbal Biomass Utilizing Inactive Sugar Factories in Poland

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of the researchStudy for Cogeneration Project with Herbal Biomass Utilizing Inactive Sugar Factories in Poland
FYFY 2004
Main research organizationMizuho Information & Research Institute
Research partner(s)Krajowa Spo.ka Cukrowa .Polski Cukier” S.A (KSC)
Przedsiebiorstwo Realizacji Energetyki Odnawialnej
Ltd., (ENOD)
Location of the projectThe Republic of Poland
Summary of the research report (PDF)Summary(188kb)
Description of the projectThis project is to implement a cogeneration project with herbal biomass (beet, rape residue) as fuel, utilizing the existing cogeneration facilities in Rejowiec factory, a state-run sugar factory in Poland which has been closed since 2001.

1)Biomass fuel procurement
Considering the characteristics of the local agriculture, it is planned to use sugar beet pulp or feed beet biomass, rape straw and strained rape lees as main biomass fuel for this project. The table below shows the biomass procurement plan of the year.

2)Production of renewable energy
It is planned to implement the installation and rehabilitation of the facilities as stated below, utilizing the existing electric power system of the sugar factory.
    • (1) Installation of straw storage and drying facility

    (2) Installation of facility for biomass processing/fuel pallet production
The facilities for biomass processing/fuel pallet production are planned to be installed diversified near the biomass-producing area. They are to be equipped with the followings.
    • (3) Fuel distribution equipment for boiler

    (4) Rehabilitation of boiler
In the early stage of the project, it is planned to use the existing boiler and so fuel for fire grate furnace is to be switched from coal to biomass pallet.
    (5) Installation of turbine and power generator
Since the existing steam turbine set in the sugar factory has small capacity, it is planned to renew to the one with 10MWe.
    (6) Installation of ash fertilizing equipment
Sector of the projectBiomass Utilisation
Duration of the project activity/ crediting period-Starting date of the project activity: 01/09/2006
-Expected operational lifetime of the project activity: 30 years
-Length of the first crediting period:5 years (The credit period after 2013 is scheduled to be postponed to 2026,
based on an international treaty.)
Baseline methodology/additionality1) Baseline methodology
The project is a CHP project with the fuel of biomass (rape residue). The power generated in the project is sold to the national grid and the heat produced is supplied to factories and greenhouse located near the CHP.
①Baseline regarding generated power
The project is the power generation project connected to the national grid of Poland. The baseline emission is “CO2 emission amount accompanied with the generated
power to be increased in the grid” without the project.
②Baseline with regard to heat
The baseline with regard to heat sale is defined, on the basis of current condition of heat generation or heat purchasing by heat purchasers, as the emission amount in the case of most economical heat generation or heat purchasing in the future. The baseline emission amount is calculated on the basis of heat sales to the heat user, so the baseline is the gas emission for
greenhouse effect per unit heat based on fuel used and boiler efficiency.
Estimation of GHG emissions90,303(t)
Monitoring methodology1) Monitoring regarding to the emission in the project
2) Monitoring regarding leakage
3) Monitoring regarding the baseline emission
Environmental impactPreliminary Environmental Impact Assessment due to the project
activity is carried out.
Issues and tasks for project implementation■Cost-effectiveness
1)Internal Rate of Return(IRR)Internal rate based on CF before rate payment or deduction of tax

The table above shows the calculation with a hypothesis based on the project plan, so the real result could be different from it.

2)Years of payout time

The table above shows the calculation with a hypothesis based on the project plan, so the real result could be different from it.

■Prospects and problems for actual operation of the project
- It is necessary to construct a stable system for fuel procurement/supply.
- It is necessary to assess the property of the Rejowiec Factory in the future.
- It is necessary to find Japanese participants as risk takers.