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Teaser, summary, work performed and final results

Periodic Reporting for period 2 - BioRES (Sustainable Regional Supply Chains for Woody Bioenergy)

Teaser

Gas, oil and lignite are widely used in Eastern Europe. The efficient generation of heat and electricity using woody biomass, however, is still in its infancy. The EU Horizon 2020 funded project BioRES – Sustainable Regional Supply Chains for Woody Bioenergy introduces the...

Summary

Gas, oil and lignite are widely used in Eastern Europe. The efficient generation of heat and electricity using woody biomass, however, is still in its infancy. The EU Horizon 2020 funded project BioRES – Sustainable Regional Supply Chains for Woody Bioenergy introduces the concept of “Biomass Logistic and Trade Centres” (BLTCs) in Serbia, Croatia and Bulgaria, based on international cooperation with European technology leaders in Germany, Austria and Finland. BioRES increased market uptake of domestic supply chains for quality-controlled woody bioenergy products, from sustainable forestry and wood residues, by means of developing BLTCs as regional hubs.

BLTCs are regional hubs which link wood supply from forest owners, saw mills and other wood producers with demand from bulk and small buyers. They organise provision, processing and dispatching of woody bioenergy products and often combine these services with heat contracting and maintenance. The focus lies on domestic market uptake with short transport distances. At the initial investment stage, focus may be on marketing and sales. Once the local market reaches critical volumes, allowing for the decreasing cost of investments, these platforms can develop into fully-fledged BLTCs with their own production, storage and logistic facilities. This phased approach reduces the economic risk for investors.

In Slovenia, Austria, Germany and Finland BLTCs of different types, with their own production, storage and logistic facilities, are competitively operating. Serbia, Croatia and Bulgaria are forest rich countries, hence there is potential, but the sector is not very developed as of yet. Of the current sources of renewable energy in the region, biomass is the most significant, with the forestry sector being the main biomass supplier.

It is important that woody bioenergy production follows resource efficiency principles. This means extracting more energy from the same material input, as well as avoiding negative environmental effects. This is not currently the case in Serbia, Croatia or Bulgaria, where firewood is used for heating, but mainly burnt in inefficient domestic stoves and fireplaces, which also cause additional hazards, such as particulates in the air. Local and regional governments, forest owners and interested local investors are important key actors in developing local value chains for resource efficient mobilisation of woody bioenergy products from verified sources. In order to use woody bioenergy as a renewable energy source, it needs to be sustainably managed - from the forest through to combustion. In this way the high quality of woody bioenergy products and their long-term availability is guaranteed. This is essential for woody bioenergy to be a climate and eco-friendly energy source of the future.

BioRES aimed to establish 6-8 new BLTCs in at least 2 out of the 3 countries were it operated. At the end of the project, 9 BLTCs were created of which eight centers with physical infrastructure and one, Kapela in Croatia, a web-based BLTC at the moment.

Work performed

In the second reporting period BLTCs in the three countries were established (WP4), more support on aspects of quality assurance and sustainability was provided (WP5), continued capacity development was offered (WP6), awareness raising events to stimulate the demand side were organized (WP7) and continued communication and dissemination of results was conducted (WP8).

Milestone 3: Feasibility studies finalized (Month 20)
For the establishment of the BLTCs, feasibility studies of the 16 selected sites were completed (see table below for details). The aim of the feasibility studies is to assess whether the planned actions to become a BLTC would be technically and economically feasible.

Milestone 4: Model agreements agreed on (month 24)
Based on the results of the feasibility studies, BioRES supported the preparation of business plans by providing a (i) business model template that include important organisational and strategic solutions, which help the BLTC operator acquiring competitive advantages, and (ii) model agreements to assist local investor groups in the negotiation of contracts with providers and buyers. BioRES has prepared an overview of the different types of contracts typically needed by a BLTC.
To facilitate the development of a corporate identity, BioRES developed a web platform for future BLTC operators in Bulgaria, Croatia and Serbia. This platform has a dual purpose: (i) it supports new BLTC operators in their start‐up phase in market development; and (ii) provides a management tool for operating a BLTC.

Milestone 5: BLTCs started operation (Month 29)
At the end of project implementation, BioRES efforts will have led to the establishment of 9 BLTCs. One of the BLTCs has already reached preparation stage for FSC Chain of Custody certification while others are currently considering it.

In parallel to the establishment of the BLTCs, BioRES offered continued support in increasing quality assurance and sustainability of biomass. BioRES supported the Gorstak BLTC in Serbia of being certified for all its wood products. In Bulgaria, work is ongoing to get Ahira BLTC ENplus certified for quality of pellets. Support is being given to the BLTC and certification has been brought closer since the BioRES partners have successfully supported the certification of the first testing laboratory for ENplus pellets in Bulgaria. If BLTC Ahira is ENplus certified and all the suppliers are FSC certified, the BLTC may become FSC Chain of Custody (CoC) certified.

Training efforts continued. Under the BioRES project thirteen training seminars were organized. Altogether, 453 participants attended these trainings, which fulfils the goal set in the Grant agreement.

A critical of a successful BLTC is the quality of interaction with the demand side. With WP7, BioRES has thus increased its efforts in raising public awareness and increasing consumer information about advantages of woody bioenergy products, regional supply chains and the implementation of biomass logistic and trade centres. BLTC operators prepared and implemented a strategy of reaching out to (potential) consumers and held consumer information days.

All BioRES technical tools and communication material is freely available, promoted by BioRES partners at international events and introduced into new projects (eg. Interreg Croatia Bosnia or GIZ support to bioenergy in Namibia).

Final results

Nine BLTCs have been established in three countries (goal: 6-8 BLTCs in 2 countries), of which one (Gorstak) is FSC Chain of Custody certified.
Over 30,000 tons of woody bioenergy products have been sold (goal: at least 8,000 tons)

Fossil energy demand for heating is reduced: 10 500 000l Heating Oil replaced by woody bioenergy which equals 32,865 tons of CO2 equivalent

BLTCs have positive effects on local economy: A total of 149 local actors have been reached, approximately 135 SME participate in the supply chain, 126 new jobs were created in new BTLCs and along the supply chain. BLTCs created additional income and promote entrepreneurship (eg raspberry fruityards in Serbia, heat contracting in Croatia)

Transaction costs, initial investment and time required for establishing a BLTC have been reduced for project developers of BLTCs and their commercial partners. Local authorities supported the establishment and operation of the new BLTCs.

Website & more info

More info: http://bioresproject.eu.