Energy Efficiency in Intensive Livestock Farming - Estonia and rearing/Tallegg Biogas... ·...

Energy Efficiency in Intensive Livestock Farming - Estonia

Tallegg Biogas Feasibility Study prepared for CarlBro a|s

DAAS International Project #9130 May 2004


Tallegg Biogas Feasibility Study

The Danish Agricultural Advisory Service, National Centre | International

ABBREVIATIONS AND ACRONYMS AU Animal Unit, an equivalent for the number of animals that produce 100 kg nitrogen

in manure ex storage BAT Best Available Technology BSE Bovine Spongiform Encephalopati, cattle brain disease –“mad cows disease”

colloquially, connected with scrapie among sheep and the Creutzfeldt-Jacobs disease among human beings.

CHP Combined Heat and Power DANCEE Danish Co-operation for Environment in Eastern Europe DAAS The Danish Agricultural Advisory Service DEA Danish Energy Authority DEPA The Danish Environmental Protection Agency DH District Heating DKK Danish Currency Unit – Kroner DM Dry matter EAU Estonian Agricultural University EEK Estonian Currency Unit – Kroon, 1 EEK = 0.48 DKK EU European Union EURO €, European Currency Unit, 1 € = 7.42 DKK FSU Former Soviet Union GFE Green Farm Energy A/S, Danish biogas company – see

http://www.greenfarmenergy.dk. A GFE type plant is described here. GHG Green House Gas IPPC Integrated Pollution Prevention and Control (term established by Council Directive

96/61/EEC of 24 September 1996) JI Joint Implementation under the Kyoto Protocol LFA Logical Framework Approach MBM Meat and Bone Meal MSW Municipal solid waste NEFCO Nordic Environment Finance Corporation NGP Net gross product NIB Nordic Investment Bank OM Organic matter PED Primary energy demand Phare Poland and Hungary Action for Restructuring of the Economy SRM Specified Risk Material ToR Terms of Reference VAT Value Added Tax

http://www.greenfarmenergy.dk/




PREFACE The preparation of the current Tallegg Feasibility Study1 has been coordinated by National Centre | International of the Danish Agricultural Advisory Service for Carl Bro a|s in connection with the implementation of the project “Energy Efficiency in Intensive Livestock Farming – Estonia”. The farm AS TALLEGG itself has delivered information for the development of the feasibility study. The company EN-PRO as well as the Estonian Agricultural University have as sub-contractors provided valuable information for the study, and Carl Bro a|s has reviewed the report. Information provided by Green Farm Energy A/S and Gosmer Biogas in connection with a similar feasibility study for EKSEKO has been used for this study as well. The elaboration of the feasibility study was a process where the most suitable biogas technology was defined for AS TALLEGG on the basis of considered strategic issues to assess its feasibility or likelihood of succeeding. The feasibility study is also useful to other agricultural enterprises in Estonia, because intensive livestock farming is a new business here. The feasibility of biogas plants is actualised by the EU approximation process, including the necessity to comply with the IPPC Directive, the Nitrate Directive, EU’s decisions on rendering of dead animals as well as the Kyoto Protocol. The information in this study is provided on an "as is" and "as available" basis without any warranties or representation. Reasonable care has been taken to ensure that the study content is accurate and up-to-date, however, no warranties or representations are given about accuracy, sequence, timeliness or completeness of the study content. The information in this study is intended for general guidance ONLY. The Danish Agricultural Advisory Service, National Centre | International Skejby May 2004

1 The picture on the front page is taken at the headquarters of AS TALLEGG




TABLE OF CONTENT ABBREVIATIONS AND ACRONYMS ______________________________________ 3 PREFACE ___________________________________________________________ 4 TABLE OF CONTENT __________________________________________________ 5 EXECUTIVE SUMMARY ________________________________________________ 8 SISUKOKKUVÕTE ___________________________________________________ 11 1 PROBLEM DEFINITION ____________________________________________ 13

1.1 Relevance of biogas production in Estonia ______________________________ 13 1.1.1 Related problems of large animal production units_________________________________13 1.1.2 General definition of a biogas production ________________________________________14

1.1.2.1 General definition ____________________________________________________________ 14 1.1.2.2 Description of technologies _____________________________________________________ 15

1.1.3 General scope for biogas production in Estonia___________________________________19 1.1.3.1 Amounts of manure ______________________________________________________________ 20 1.1.3.2 Amounts of dead animals and slaughterhouse waste, etc ________________________________ 20 1.1.3.3 Amounts of other types of organic waste______________________________________________ 21 1.1.3.4 Prices of fuels and energy _________________________________________________________ 23 1.1.3.5 Price of water___________________________________________________________________ 24 1.1.3.6 Price of mineral fertiliser __________________________________________________________ 24 1.1.3.7 Value of CO2e quotas_____________________________________________________________ 25 1.1.3.8 General investment climate ________________________________________________________ 25

1.2 General description of the case farm, AS TALLEGG _______________________ 27 1.2.1 Presentation of AS TALLEGG ________________________________________________27 1.2.2 Description of main environmental and energy problems at AS TALLEGG ______________30

2 METHODOLOGY _________________________________________________ 31 2.1 Literature __________________________________________________________ 31 2.2 Discussions and interviews ___________________________________________ 32

3 PRE-CONDITIONS OF THE POTENTIAL BIOGAS PRODUCTION AT AS TALLEGG __________________________________________________________ 33

3.1 Estimation of available biomass _______________________________________ 33 3.2 Potential biogas production___________________________________________ 34 3.3 Potential production of mineral fertilisers _______________________________ 36

4 THE PREFERRED SOLUTION_______________________________________ 38 4.1 Summary of plant investments etc. _____________________________________ 38

5 DESCRIPTION OF FUNCTIONS _____________________________________ 40 5.1 Reception station for wastewater ______________________________________ 40 5.2 Balance installation__________________________________________________ 40




5.3 Silo for quick lime with dose adjustment ________________________________ 40 5.4 Pressure sterilisation and hydrolysis unit _______________________________ 41 5.5 Mixing tank_________________________________________________________ 42 5.6 Silo for animal offal or meat and bone meal ______________________________ 42 5.7 Stripper 1 and sanitation tank _________________________________________ 42 5.8 Bioreactor 1 ________________________________________________________ 43 5.9 Bioreactor 2 ________________________________________________________ 44 5.10 Bioreactor 3 ________________________________________________________ 44 5.11 Bioreactor 4 ________________________________________________________ 44 5.12 Shunt _____________________________________________________________ 45 5.13 Buffer tank before decanter ___________________________________________ 45 5.14 Pax and polymer addition_____________________________________________ 45 5.15 Decanter___________________________________________________________ 45 5.16 Transport __________________________________________________________ 46 5.17 Buffer tank for reject water____________________________________________ 46 5.18 Stripper and absorber 2 ______________________________________________ 46 5.19 Reject water tank____________________________________________________ 46 5.20 Gas store __________________________________________________________ 46 5.21 Gas scrubber _______________________________________________________ 47 5.22 Absorbers A and B __________________________________________________ 48 5.23 Sodium hydroxide tank_______________________________________________ 48 5.24 Sulphuric acid tank __________________________________________________ 48 5.25 Liquid ammonia tank_________________________________________________ 48 5.26 Tank for liquid biomass ______________________________________________ 49 5.27 Gas motor/ generator units ___________________________________________ 49 5.28 Gas kettle __________________________________________________________ 50 5.29 Gas torch __________________________________________________________ 50 5.30 Tank for organic acid ________________________________________________ 51 5.31 SCADA, supervisory control and data acquisition_________________________ 51 5.32 Boiler house________________________________________________________ 51 5.33 Pumping station for rain water_________________________________________ 51 5.34 Sanitary wastewater _________________________________________________ 52 5.35 Plan of the GFE type plant ____________________________________________ 52

6 ENVIRONMENTAL IMPACT_________________________________________ 53 6.1 Energy production___________________________________________________ 53 6.2 Greenhouse gas emission ____________________________________________ 53 6.3 Leaching and emission of plant nutrients________________________________ 54

7 SUMMARY OF ECONOMIC IMPACTS ________________________________ 56 8 ORGANISATION AND FINANCING ___________________________________ 60




8.1 Organisation _______________________________________________________ 60 8.2 Financing __________________________________________________________ 60

9 AGREEMENTS ___________________________________________________ 62 9.1 Supply of biomass___________________________________________________ 62 9.2 Electricity/water and telephone connection ______________________________ 62 9.3 Delivery of electricity and fertiliser _____________________________________ 62 9.4 Sale of the CO2e quota________________________________________________ 62

10 AUTHORITY APPROVALS ________________________________________ 63 11 PREPARATION OF PROJECT PROPOSAL __________________________ 64 ANNEX A GENERAL FARM DESCRIPTION _____________________________ 66 ANNEX B DETAILS OF ARTICLE 12 CONCERNING APPROVAL OF BIOGAS PLANTS 75

The Article 12 (1774/2002/EEC) approval scheme _______________________________ 75 Annex B Comments _______________________________________________________ 76

ANNEX C PLAN OF THE GFE TYPE BIOGAS PLANT FOR AS TALLEGG ___ 77




EXECUTIVE SUMMARY The Estonian situation is well represented by the AS TALLEGG farm. Here, a large poultry production shall improve its environmental performance significantly over a broad range of issues including odour and nuisance from the animal houses and from the spreading of slurry to nutrient emissions such as ammonia volatilisation, nitrate leaching losses and discharges to the aquatic environment. However, the economics of poultry operations is under constant pressure and it is therefore equally important that TALLEGG improves its economical performance. The principle of turning waste into value represents a new business opportunity, which allows TALLEGG to meet the environmental challenges while at the same time increase the economic return of the operation.

• In general the large animal production farms in Estonia, in cooperation with the Estonian Government, face the challenge of complying with EU legislation, including the IPPC Directive, the Nitrate Directive, EU’s decisions on rendering of dead animals as well as the Kyoto Protocol

• A biogas production is generally an anaerobic bacterial digestion of biomass, typically

mainly livestock manure. Heating the manure to 50-70°C (thermopile process) speeds up the digestion. The digestion will release biogas in quantities of around 1,200 m3 biogas per tonnes DM of lipids and 400 m3 biogas per tonnes of other DM substances in average. The biogas consists of 60-70% methane (CH4), which is greenhouse gas and a valuable energy source. The anaerobic digestion will efficiently reduce problems with odours and nuisances in connection with the spreading of manure. The biogas technology varies from the basic technologies, where slurry/biomass undergoes a simple de-gasification, to more advanced and complex technologies, where the biogas plant should rather be called an energy, sanitation and environmental unit, which includes for instance:

o processing and mixing with solid organic wastes as dead animals, silage, grass, slaughterhouse waste, etc.;

o nitrogen stripping; o separation of the end products into concentrated mineral fertilisers; and o conversion of the biogas to electricity

• In general the scope for biogas production in Estonia is related to the number of large

animal production units, of which there are 52, and to the economic and legal conditions. Estonian policies do not favour energy production from renewable sources, so the erection of biogas plants in Estonia would be carried out more for environmental and sanitarian reasons, for instance with the purpose of obtaining an IPPC approval.




• AS TALLEGG is among the 52 Estonian IPPC farms. It has around 279,000 hens and 965,000 broilers in its stables excluding parent and young stock breeding stocks, and is probably the largest poultry farm in the Baltic countries. The specific challenges for AS TALLEGG are defined as:

o Disposal of manure – around 20,000 tonnes of slurry and 15,000 deep litter. The

farm has agreements with 2 companies (legally and economically separate from TALLEGG), who take the manure away. This solution is satisfactory to TALLEGG. The companies spread the manure on the fields or make it into compost. The operation does not seem very profitable. There is a high content of P in the manure, and it is limited how much they are allowed to spread onto the fields per ha. Dry matter content is 10-20%. The contracts with the companies are of 1-year duration with automatic prolongation.

o There are strong smells from the spreading of the manure, and there are more and more complaints from people – Tallinn is growing and spreading. Manure is only spread in spring and autumn.

o Rendering. Dead animals are collected in containers and picked up by the rendering plant “Vania”.

o Disposal of hens: Slaughtering and bone-meat mass for sausages. The kitchen on the farm processes it. However, in the future it might be too costly to slaughter the hens and more cost-efficient to kill them and dispose of them.

o Slaughterhouse waste: The amount of wastes in total is 4,500 tonnes (feathers, intestines, flotation fat). Partly sold to fox farms.

o The farm is without own crop fields, which could absorb the manure as fertiliser, and is therefore dependent on agreements with neighbouring farms (via the 2 contracted companies). Currently, the amount of nitrogen and other plant nutrients in the manure is thus given away for free.

o The farm has huge energy consumption for heating, feeding and ventilation. The cost of this energy consumption could be reduced by the use of own biogas for heating and/or production of electricity, and the dependence on external supplies would be decreased.

• The amounts of slurry and other organic wastes from AS TALLEGG and its close

surroundings would make it possible to produce 8.9 million m3 biogas per year.

• Compared with combustion in existing gas boilers, it would be a much more favourable solution to convert the biogas into electricity, which would enable the sale of electricity for EEK 16.1 million per year.

• The value of the plant nutrients in the end products are estimated to be no less than EEK

25 million if it was sold on commercial conditions. Due to sales and marketing costs etc. we estimate the gross income from the sales of mineral fertilisers would be EEK 12.1 million.




• It is recommended that Bio Projekt continue with the preparations for the erection of a

biogas plant of the type, which includes technologies for separation of end products, pressure-cooking for processing of dead animals, etc. The technological solution is described in Chapters 4 and 5, and a plan of the layout has been produced (in Annex C).

• The economic impacts are estimated as a net investment of EEK 203 million, and with

annual revenues of EEK 49.1 million and annual costs of EEK 30.3 million, the investment would give an annual profit after depreciation and payment of interest costs of 18.8 million. The simple payback period is roughly estimated to 2½ year. If the investors would fail to obtain 50% support for the investment costs, the annual costs would be EEK 36.1 million; the annual profits EEK 13 million, and the simple payback period approx. 6 years.

• The company Bio Project has been established to mature the biogas project.

• Various permits, agreements and investigations should be handled before the final

construction works starts. The plant could be ready for use by September 2005.

• The environmental impacts of the biogas plant are estimated to no less than 34 574 tonnes CO2e per year, 55 580 kg SO2 per year, and 7 200 kg NOx per year. The reduced amount of ash is estimated to 965 tonnes per year. The environment would furthermore be saved from 870 tonnes of N, 158 tonnes of P and 12 tonnes of K per year due to a higher field effect.




SISUKOKKUVÕTE Eesti olukord tuleb hästi esile AS TALLEGG farmis. See farm peab oluliselt parandama keskkonnahoiu tulemuslikkust lindude suurtootmisel paljudes valdkondades alates ebameeldivast lõhnast ja gaasidest loomapidamishoonetest ning läga laotamisel kuni toitainete heitmeteni, nt. ammoniaagi lendumine, nitraatide leostumine ja väljavool veekeskkonda. Linnukasvatuse majanduslik tasuvus on pideva surve all ja seetõttu on võrdselt tähtis, et TALLEGG-i majandustulemused paraneksid. Põhimõte - muuta jäätmed väärtuseks - annab uue ärivõimaluse, mis võimaldab TALLEGG-il täita keskkonnatingimusi ning samal ajal tõsta majanduskasu tootmisest.

• Üldjoontes suured loomakasvatusfarmid, koostöös Eesti valitsusega, seisavad silmitsi väljakutsega olla vastavuses erinevate EL seadusandlike dokumentidega, sealhulgas IPPC Direktiiviga, Nitraatide Direktiiviga, EL otsustega jäätmete käitlemise kohta jne, aga ka Kyoto Protokolliga.

• Biogaasi tootmine on biomassi anaeroobne bakteriaalne lagundamine, tavaliselt enamasti eluskarja sõnnikust. Sõnniku kuumutamine 50 – 70°C-ni kiirendab lagunemisprotsessi. Lagunemise käigus eraldub keskmiselt 1200 m3 biogaasi lipiidide kuivaine tonni kohta ja 400 m3 teiste kuivainete tonni kohta. Biogaas sisaldab 60-70% metaani (CH4), mis on kasvuhoonegaas ja väärtuslik energiaallikas. Anaeroobne lagunemine vähendab tõhusalt ebameeldivat lõhna ja gaaside probleemi seoses sõnniku laotamisega. Biogaasi tehnoloogia varieerub alates lihtsatest tehnoloogiatest, kus läga/biomass degaseeritakse, kuni keerukamate tehnoloogiateni, kus biogaasi tehast tuleks pigem nimetada energia, sanitaarkaitse ja keskkonna üksuseks. See sisaldab näiteks

o Tahkete orgaaniliste jäätmete töötlemist ja segamist, nt loomakorjused, silo, rohi, tapamajade jäätmed jne;

o Lämmastiku eraldamist; o Lõppsaaduste eraldamist kontsentreeritud mineraalväetisteks; ja o Biogaasi muundamist elektriks.

• Üldiselt on biogaasi tootmise võimalik ulatus Eestis seotud suurte loomakasvatusfarmide arvuga, mida on 52, ning majandus- ja seadusandlike tingimustega. Eesti poliitika ei soosi energia tootmist taastuvatest allikatest, see tähendab, et biogaasi tehas ehitataks pigem keskkonna ja sanitaarkaitse nõudmiste tõttu, nt. eesmärgiga saada IPPC heakskiit. • AS TALLEGG on üks 52 Eesti IPPC farmist. Farmi kanalates on u. 279 000 kana ja 965 000 broilerit oma lindlates, arvestamata haude- ja noorlindude paljunduskarja, ning ta on võib-olla suurim linnufarm Balti riikides. Spetsiifilised väljakutsed, mis seisavad AS TALLEGG ees, on järgmised:

o Sõnniku käitlemine –ligikaudu 20000 tonni läga ja 15000 tonni sügavallapanu. Farmil on lepingud kahe ettevõttega (juriidiliselt ja majanduslikult eraldi TALLEGG-ist), kes viivad sõnniku ära. Selline lahendus rahuldab TALLEGG-i. Ettevõtted laotavad sõnniku põldudele või teevad kompostiks. See tegevus ei tundu olevat eriti kasumlik. Sõnnikul on kõrge fosforisisaldus ja laotatav kogus põldudele hektari kohta on piiratud. Kuivaine sisaldus on 10-20%. Lepingud ettevõtetega on 1




aastase tähtajaga ning automaatse pikendamisega. o Sõnniku laotamisel tekib tugev lõhn ning rohkem ja rohkem esitatakse kaebusi

inimestelt – Tallinn kasvab ja laieneb. Sõnnikut laotatakse ainult kevadel ja sügisel. o Utiliseerimine. Surnud loomad kogutakse konteineritesse ja käideldakse “Vania”

utiliseerimistehases. o Kanade realiseerimine: tapmine ja kondiliha mass vorstiks. Seda töötleb farmi

köök. Siiski tulevikus võib kanade veristamine osutuda liiga kalliks ja tulevikus võib olla odavam nende tapmine ja kõrvaldamine.

o Tapamaja jäätmed: jäätmete kogus on 4500 tonni (suled, sisikonnad, flotatsioonirasv). Osalt müüakse rebasefarmidele.

o Farmil puuduvad oma viljapõllud, kus võiks sõnnikut kasutada väetisena ja ta on seetõttu sõltuv lepingutest naaberfarmidega (kahe lepingulise ettevõtte kaudu). Praegu antakse sõnnikus sisalduv lämmastik ja muud taimetoitained tasuta ära.

o Farmil on väga suur energiatarbimine kütteks, söötmiseks ja ventilatsiooniks. Selle energiatarbimise maksumust saaks vähendada oma biogaasi kasutamisega soojuse ja/või elektri tootmiseks ja sõltuvus välistest tarnijatest väheneb.

• Läga ja muude orgaaniliste jäätmete hulk AS TALLEGG-ist ja lähiümbrusest võimaldab

toota 8,9 milj m3 biogaasi aastas. • Võrreldes põletamisega olemasolevates gaasiboilerites, on biogaasi muundamine

elektrienergiaks palju soodsam lahendus, mis võimaldaks müüa elektrienergiat kokku 16,1 milj. EEK eest aastas.

• Taimetoitainete väärtust lõppsaadustes hinnatakse vähemalt 25 milj. EEK, kui seda müüdaks kommertstingimustel. Müügi, marketingi jne kulude tõttu, hindame me mineraalväetiste müügist saadud kogutulu 12,1 milj. EEK.

• Soovitus on, et Bio Project jätkaks ettevalmistustöid niisuguse biogaasi tehase ehitamiseks, kus oleks tehnoloogia lõppsaaduste sorteerimiseks, survekeetel loomakorjuste töötlemiseks jne. Tehnoloogilist lahendust on kirjeldatud peatükkides 4 ja 5. Esitatud on ka tehnoloogilise lahenduse joonis (lisas C).

• Majanduslikku mõju hinnatakse puhasinvesteeringuna 203 milj. EEK, aastakäibena 49,1 milj. EEK ja kuludena 30,3 milj. krooni aastas, mis annavad investeeringu aastaseks kasumiks peale amortisatsiooni ja intressimaksete mahaarvamist 18,8 milj.EEK. Lihttasuvusaega on jämedalt hinnatud ligikaudu 2,5 aastaga. Kui investoreil ei õnnestu saada 50% toetust investeerimiskuludeks, oleks aastased kulud 36,1 milj. EEK, aastane kasum 13 milj. EEK ja lihttasuvusaeg ligikaudu 6 aastat.

• On loodud ettevõte Bio Project biogaasi projekti teostamiseks. • Erinevad load, kooskõlastused ja uuringud peavad olemas olema enne tehase tegeliku

ehituse algust. Tehas võiks valmida septembriks 2005. • Keskkonnamõju biogaasi tehasest hinnatakse mitte väiksemaks kui 34 574 tonni CO2e

aastas, 55 580 kg SO2 aastas ja 7 200 kg NOx aastas. Hinnanguliselt tekib aastas 965 tonni vähem tuhka. Veelgi enam, tänu suuremale kasutuseffektiivsusele säästetakse keskkonda 870 tonnist lämmastikust, 158 tonnist fosforist ja 12 tonnist kaaliumist.




1 PROBLEM DEFINITION 1.1 Relevance of biogas production in Estonia

1.1.1 Related problems of large animal production units Large animal production units naturally produce large quantities of livestock manure, and this manure is, due to the fact that the large production is concentrated at one spot, a specific threat to the environment. The main problems for such farms are: • to dispose the manure in an environmentally safe way, including transport of the manure to the

place of disposal; • to keep odours and nuisance from the production and from the disposal of the manure on

levels acceptable to neighbours and to the local society in general; • to avoid the spreading of contagious diseases and parasites with the manure; • to avoid the spreading of weed seeds with the manure; and • to dispose the dead animals in an environmentally safe and hygienically trustworthy manner. Especially large poultry and pig productions are to be considered as potential threats to the environment, because technically, these productions can take place without connection to areas with crop production, which could absorb the livestock manure. Using a popular term such farms are called “hot spots”. In order to avoid hot spots and the connected endangering of the environment, EU has issued the so-called Nitrate Directive2, which recommends to spread a maximum of 170 kg N in livestock manure per ha of agricultural land, with the possibility to enforce this recommendation as a mandatory measure in specially designated nitrate vulnerable zones. In the so-called IPPC Directive3 EU has defined the threshold size, above which an animal production unit becomes a special danger to the environment, for installations for the intensive rearing of poultry or pigs with more than 40,000 places for poultry, or 2,000 places for production pigs (over 30 kg), or 750 places for sows. Estonia currently has 52 farms, which comes under this IPPC Directive threshold, while there are around 1,700 in Denmark, which has a much higher livestock density than Estonia and a farming structure moving towards large-scale farming. The rendering plants for treating offal from livestock productions face new challenges in light of the recent BSE crises. A number of regulations and requirements shall be met by the processing and disposal systems for animal waste and animal by-products. EU provides a common legal

2 Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates

from agricultural sources 3 Council Directive 96/61/EEC of 24 September 1996 concerning integrated pollution prevention and control




framework for dealing with the BSE crisis. Hence, since 1989, with the purpose of preventing, controlling and eradicating certain transmissible spongiform encephalopathies (TSE) EU has undertaken a number of legislative measures. Among the more important regulations with respect to animal bi-products are: • The ban on the use of proteins derived from mammalian tissues for feeding ruminants, D

94/381/EEC of 27 June 1994 • The introduction of new pressure-cooking standards for processing mammalian waste, the D

96/449/EEC of 18 July 1996 • The temporary ban on the use of meat and bone meal, D 2000/766/EEC of 4 December 2000 • The prevention, control and eradication of certain TSE, R 999/2001 of 22 May 2001 The regulation 1774/2002/EEC sets the legislative framework for handling and disposal means for animal by-products. The scope of this regulation is detailed in Article 1, which reads:

1. This Regulation lays down the animal and public health rules for:

a. the collection, transport, storage, handling, processing and use or disposal of animal by-products, to prevent these products from presenting a risk to animal or public health;

b. the placing on the market and, in certain specific cases, the export and transit of animal by-products and those products derived therefrom referred to in Annexes VII and VIII.

The regulation came into force in May 2003 in all member states and shall also apply in accession states. It therefore represents a common legal framework for operating treatment plants for animal by-products in the EU. The key aspects of the regulation are the categorisation of animal by-products into three categories, where category 1 includes the Specified Risk Material (SRM), category 3 all parts of slaughtered animals which have been declared fit for human consumption, and category 2 animal by-products other than category 1 and 3 material. The SRM material shall be incinerated or alternatively buried in a landfill, while the category 2 and 3 material may be treated in biogas plants and the nutrients subsequently used as fertilisers on agricultural land. Given these definitions and regulations it is certain that a large fraction of the approximately 16 mio. tonnes of animal by-products produced annually in EU shall be disposed of through the means outlined in the 1774/2002/EEC. The regulation allows rendered by-products, such as meat and bone meal (MBM), and rendered fats to be treated in biogas plants or co-digested in such plants along with animal manures as well as dead animals (fallen stock). The mentioned EU legislation is now being implemented in Estonia.

1.1.2 General definition of a biogas production

1.1.2.1 General definition

A biogas production is in general an anaerobic bacterial digestion of biomass, typically with liquid livestock manure as the basic biomass type. Heating the manure to 50-70°C (thermopile process) speeds up the digestion. The digestion will release biogas in quantities of around 1,200 m3 biogas




per tonnes DM of lipids and 400 m3 biogas per tonnes of other DM substances in average. The biogas consists of 60-70% methane (CH4), which is a greenhouse gas and a valuable energy source. The anaerobic digestion will efficiently reduce problems with odours and nuisances in connection with the subsequent storage and spreading of the manure. Optimally, the biomass should have an organic matter (OM) content of above 10%, as otherwise it would be too energy demanding to heat (in a thermopile process). It is therefore necessary to add other substances to liquid livestock manure, which normally holds 4-7% DM only (with 80% OM). There is an economy of scale in biogas production, as the investment size is negatively correlated with the capacity. As a rule of thumb, a biogas plant should have more than 25,000 tonnes annual capacity in order to operate cost-efficiently, and preferably more than 100,000 tonnes. The biogas can be captured in tanks for later use, but as the storage is costly, it is normally converted to electricity or heat immediately.

1.1.2.2 Description of technologies

Some companies produce “basic” biogas plants without especially advanced technologies; slurry goes in, is digested, and comes out as digested slurry. This is for instance the case with the Turnkey Contractor Bioenergy System in Denmark, who produces small-scale plants, where the digesters are constructed based on standard circular concrete manure tanks provided with an inner tank for use as digester, a so-called “storage-tank plant”. The produced biogas can be converted to electricity or to heat according to the most favourable economic solution. These types of biogas plants are normally based on a mesophile process, where the digestion takes place at a temperature of around 35-40°C. A more advanced, and the most widespread biogas plant technology in Denmark, is for instance represented by the company Dansk Biogas; their plants would be based on a thermophile process, have separate reactor tanks, and be of a size which suits the largest Danish family farms, for instance farms producing up to 25,000 pigs per year. This type of biogas plants would normally use 25% of external biomass types that would be able to be mixed with the slurry without complicated pre-treatments. Such types of biomass would be for instance municipal wastewater sludge, whey, special pre-treated slaughterhouse waste, various sorts of fat-containing by-products, etc.




Picture 1 Reactor, storage and process tanks of a Dansk Biogas biogas plant at a large Danish pig farm.

Dansk Biogas is based on today’s demands and challenges to farms experimenting with reception of still new types of biomass and with the separation of the digested biomass in the process water and concentrates of plant nutrients. At the other end of the technology scale we find the concept of Green Farm Energy AS (GFE). The GFE concept will be more elaborately presented here, as this technology seems the ideal choice for AS TALLEGG, among other things due to the high content of nitrogen in poultry manure. A GFE type plant is designed to digest and refine any biomass from agriculture, industry and municipalities. The preferred employment of the biogas technology is the treatment of combinations of wastes. These are co-digested and finally refined to nutrients and clean process water for recycling or irrigation. The agricultural wastes such as pig and cattle slurry are most frequently used as a basic feed, which is supplemented with various other types of waste from industry and municipalities. However, it is also possible solely to digest rendered fats and meat and bone meal (MBM) at the premises of the rendering plant. Here the advanced process is integrated with the running of the rendering plants to gain mutual benefits. Several potential solutions are possible:




• A biogas and refinement plant integrated with the rendering plant; • Co-digestion with animal manures in one or more plants in farming communities with large

livestock operations; • Co-digestion with municipal or industrial waste; • Any combination hereof GFE has developed a biogas concept, where the energy production and nutrient refinement is based on the abundant quantities of biomass from agriculture and industry. Last, but not least, the waste and slurry is done away with! The use of various kinds of biomass from agriculture and industry requires a new biogas principle including various pre-treatments of the biomass and digestion in several steps. The solid biomass such as deep litter, solid manure, energy crops etc. is made up of recalcitrant plant fibres difficult to digest in a biogas plant. However, these biomasses have a great energy potential, and it is therefore important to make them available to biogas production. Physical and thermo-chemical pre-treatments are employed to achieve this. The meat and bone meal and rendered fats and similar products which have been pressure sterilised at 133oC at a 3-bar pressure for 20 minutes according to EU legislation do not necessarily require further pre-treatment. However, the 1774/2002 regulation demands a sanitation process before use in biogas plants and a control procedure for allowing digestion in such plants. The solid agricultural manures and other biomasses are difficult to handle because they are voluminous and not easy to mix in water (or slurry). For example, it is well known that deep litter or dung can be used as floating covers on slurry tanks. GFE plants are therefore equipped with a large reception station for solid biomass from which the biomass is led to a pressure cooker via screw conveyors. The biomass is exposed to hot alkali in the pressure cooker. During this treatment a first hydrolysis of the fibres is achieved and the biomass becomes soft and possible to mix in water (or slurry). The running parameters of the pressure cooker can vary between 120–160oC and the pressure between 2 to 6 bar, while the pH may be varied from neutral to the highly alkaline level. This mass is now mixed with raw slurry in a sanitation tank, where the slurry is pre-treated and sanitised while being mixed with the mass from the pressure cooker (which of course is completely sterile). Following these treatments, the biomass is well prepared for anaerobic digestion in two or three reactors. This construction also allows a second pressure sterilisation possibly at higher temperatures and pressures of MBM if needed for the elimination of any risks associated with this product or if needed for approval by authorities. It can be mentioned that the GFE has achieved an exclusive license in Denmark to digest MBM in GFE plants due to the fact that the product undergoes a




second pressure sterilisation in the GFE plant in addition to the sterilisation at the rendering plant. The GFE type plant is further presented in the following table: Reactor design

Plants equipped with two or three reactors are used in order to achieve flexibility as regards temperature, retention times and a possible division of the biogas process into two- or three-phased configuration. The default choice is digestion at the hyper thermopile temperature level of about 60oC.

The pre-treatment and the flexibility of the reactor system is basis for a substantially higher organic loading rate and therefore a substantially higher methane production per cubic meter reactor volume. The system is outlined in Annex C. As the biogas process uses manure of all kinds and possibly fodder waste, energy crops, etc., and therefore concentrate large amounts of nutrients at one location, it is necessary that the nutrients be refined to pure fertilizers, which may be transported and used as fertilizers of commercial quality within agriculture.

The N-separation

The N-separation benefits from the excess heat produced by the motor/generator plant fuelled by the biogas. The electricity is sold via the net but under many circumstances there is a surplus of heat. The separation of nitrogen from the biomass is therefore designed to use excess heat for ammonia stripping.

The first part of the ammonia stripping takes place together with the pre-treatment of the biomass. Here, the stripping benefits from the fact that the biomass is retained 4-6 days at 80oC. At these conditions for this particular part of the pre-treatment the ammonia contained in the biomass partly volatilises. The volatile ammonia is subsequently collected in an absorber.

Removal of ammonia before anaerobic digestion is an advantage to the biogas process. However, this part of the stripper system only partly removes the N in the biomass. For the purpose of removing the rest of the ammonia two further steps are used, i.e. a step to be applied directly to the biogas reactors and a final step to ensure a complete removal of ammonia from the degassed biomass.

The biomass for final N treatment is well digested and therefore a homogeneous liquid. This allows utilizing a special steam stripping procedure and special column in a manner, which allows the process to be fuelled by heat. The product is a 25% ammonia solution.

Mixing the ammonia fractions from each of the stripping steps produces the final N-fraction.

It should be noted that the digestion of MBM and fallen stock in a conventional bioreactor is impossible, because the MBM releases substantial amounts of ammonia during digestion. If not controlled, this will inevitably kill the microorganisms and the digestion will cease.

P-separation

The P is separated from the biomass by means of a decanter centrifuge mainly. A centrifuge effectively separates P from biomass including slurry. The integration with the biogas process, however, shall ensure a particular effective P-removal because lime may be used during the pre-treatment for the purpose of rendering fibres available for microbial decomposition in the biogas reactors. The lime will precipitate P and thus contribute to the P-removal.




K-separation

The most important nutrients in slurry and manure are N, P and K. Following digestion and N and P stripping, the remaining water phase, the reject water, contains the bulk of the K present in the biomass introduced to the plant. The reject water may be used to field irrigation or may be further concentrated to a 10-20% liquid K-fertilizer. If K is separated the remaining water phase can be irrigated onto a few hectares of agricultural land.

Biogas and refinement

The combined biogas and separation process constitutes an attractive plant, which generates a number of benefits to agriculture and the environment, and in addition meets the requirements to process animal by-products.

The Kyoto Protocol of 1997 of the United Nations Framework Convention on Climate Change (UNFCCC) considers biogas as CO2e neutral and as such releasing CO2e quotas when replacing conventional energy sources. The releasing of the value of the CO2e quotas depends on the establishment of Joint Implementation mechanisms.

Danish pig production farms are increasingly selecting the establishment of a biogas production as a BAT to handle their environmental problems and thus for obtaining of IPPC approvals.

1.1.3 General scope for biogas production in Estonia To our knowledge, there are no biogas plants running in the Baltic countries at present, neither for the handling of biomass related to agriculture nor for the handling of sewage fractions from the cities. A biogas plant was establish in Estonia in the early 90’ties, but it was unsuccessful due to inappropriate technology and an unfavourable situation at that time: • There were no environmental rules for farming in Estonia at that time, neither in relation to the

Nitrate Directive nor in relation to the IPPC Directive • The Kyoto Protocol was not considered • The marked for mineral fertilisers was almost non-existent The Danish Ministry of Food, Agriculture and Fisheries has financed a project in Estonia to prepare the establishment of necessary rendering plant capacities in compliance with acquis communautaire. To our knowledge, such capacity is yet to be established, but at least one plant is planned in Estonia with public support. A number of Estonian pre-conditions of importance to the establishment of biogas production are presented below: • Estimate of the total manure production • Estimate of the amount of dead animals and slaughterhouse wastes, etc. • Information about energy prices including sale of electricity to the grid • Price of mineral fertilisers on the market • Price of water

http://www.unfccc.de/resource/convkp.html




• Labour costs • Assessment of the financial market

1.1.3.1 Amounts of manure

The following estimate on the manure production is based on statistics for number of livestock and developed manure standards in Estonia. Type of animal No. Tonnes DM per animal

per year Tonnes DM in total

Dairy cows4 150,000 1,21 181,500 Other cattle 110,600 0,36 39,816 Sows with piglets 35,000 0,14 4,900 Fatteners 35,000 0,33 11,550 Horses 5,500 1,33 7,315 Sheep and goats 28,800 0,40 11,520 Poultry * 1,000 2,343 0,37 867

TOTAL, tonnes DM: 257,468 Table 1. Estimate of livestock manure amounts in Estonia. Sources: Number of livestock is according to

statistics for 2002 from FAOSTAT-Agriculture and production of manure expressed as DM(dry matter) is according to “Håndbog for Driftsplanlægning 2002”.

Roughly the estimated amounts of livestock manures are with a content of 12% DM in average, so an estimate of the physical amounts would be found by multiplying by a coefficient of 8.33. The normal practice of small household units is to use straw as bedding whereas the professional farms use sawdust and the largest livestock production units would produce slurry with a limited use of bedding material.

1.1.3.2 Amounts of dead animals and slaughterhouse waste, etc

The following table shows the estimated amounts of dead animals and slaughterhouse waste, etc.

Type Annual production, tonnes

Slaughterhouse waste 47,816

Catering waste 6,338

Dead animals Included in slaughterhouse waste

Total 54,154Table 2. Estimated amounts of dead animals and slaughterhouse waste etc. in Estonia. Sources: The

Danish Ministry of Food, Agriculture and Fisheries.

4 Anticipating 25% is left on the fields during grazing.




1.1.3.3 Amounts of other types of organic waste

Various types of organic waste could potentially be used as fuels in biogas plants and after the gasification as valuable plant fertilisers. In any case, the wastes must comply with the following: • Contents of heavy metals must be under limits set by the legislation • The wastes may not contain inorganic wastes (plastic, glass, etc.) • The wastes may not contain chemical substances, which inhibit the anaerobic digestion, such

as antibiotics, sulphur, etc. • The wastes should have an acceptable gas production potential and therefore contain at least

10% organic dry matter (OM), and may not previously have been treated aerobically • Potential wastes include the following: Source Organic waste Slaughterhouses for cattle and pigs • Stomach content

• Manure (cleaning of trucks etc.)

• Fat from flotation plants (wastewater)

Slaughterhouses for poultry • Fat from flotation plants (wastewater)

• Feathers

Bone-meal manufacturing • Fat

Ready made food • Oil from deep frying

• Vegetable residues

Cannery • Vegetable shells

• Fat from floatation plant

• Vinegar (clean or in wastewater)

• Sugar (clean or in wastewater)

• Products with failures

Slurry exhauster companies • Fat from fat traps etc.

Vegetable oil industry • Benetonite and other filtering medium

• Waste oil

Fish industry • Fat from flotation plants and fat traps

• Bones, heads and bowels

• Polluted fish oil (oil mixed with water)

Tobacco industry • Dust, stems

Green markets • Vegetables

Tanneries • Size

Wine and alcohol • Yeast

• Vegetable waste




Source Organic waste Fish farming • Dead fish

• Slurry

Dairies • Whey

• Lactose

• Waste from cheese production (cheese residuals)

Breweries • Draff, mash

• Sediments

• Filtering medium

Farming • Excess straw

• Grass or grass silage Table 3. Organic wastes which can be used as fuels in biogas plants.

To our knowledge apart from straw and grass/grass silage (see below), there are no surveys or estimates on the amounts of such organic wastes in Estonia. The production of straw is estimated from the area with grain reduced by the anticipated consumption of straw for bedding.

Production, Mt Estonia Barley 270000

Wheat 130000

Oats 93000

Rye 41000

Buckwheat 600

Triticale 0

Grain production in total 534.600Estimated straw production, 85% DM 1.899Rough estimate of use for bedding etc.5 348.218

Surplus of straw, Mt 0Table 4. Estimate of surplus straw in the Baltic countries. Sources: Production of grain is according to

statistics for 2002 from FAOSTAT-Agriculture, and amounts of beeding is according to “Håndbog for Driftsplanlægning 2002”.

It can be mentioned that the estimated straw surplus in Denmark is around 1 Mt, and this seems consistent with the very rough estimates in Table 4 concerning Estonia.

5 The estimate is roughly calculated as half of the amounts of DM in manure + 100% due to waste on fields and in stables, use

for cover of fodder, etc.




Grass and grass silage is especially interesting if the production price is low, which will be the case in Estonia in the future when the country from May 2004 onwards is to comply with the CAP and there might be a requirement for fallow fields (which can be grown with grass) in order to obtain crop premiums.

1.1.3.4 Prices of fuels and energy

In Estonia there are no cross-subsidies (e.g. non-households to households) in energy pricing. Average prices on fuels purchased by energy utilities (excluding VAT) are shown in the following table:

Fuel 2002 February 2003 April 2004 Natural gas, EEK/103 m3 1,378 1,481 1,800

Heavy fuel oil, EEK/t 1,775 1,994

Light fuel oil, EEK/t 4,192 4,774 4,000 (special price for large contracts)

Table 5. Average prices on fuels purchased by energy utilities (excluding VAT) As to statistics on average electricity prices, the situation is more complicated, as official statistics are available for 2001 only, but on 1 April 2002 new and higher tariff rates were introduced. The tariff table of Eesti Energia AS is quite complicated; there are 12 tariff packages to be selected by customers at 0.38 (0.22) kV voltage level and four packages at higher (up to 35 kV) levels of supply. An estimation of the possible average price for an industrial enterprise with annual consumption of 2,000 MWh (i.e. group Ie in Eurostat and B2 in UNIPEDE classification): 738-748 EEK/MWh (excluding VAT). For households (all consumers supplied at 0.38 (0.22) kV) the average can be from 0.90 up to 1.10 EEK/kWh (excluding VAT). There are separate tariffs for transmission and distribution services. The next table shows different electricity prices: Item Price EEK, February 2003 Price EKK, April 2004Households tariff 0.90 – 1.10 1.05

Industry tariff 0.74 – 0.75 0,85

Sold to the grid 0.80 1.8 times the production cost in Narva (43 cents per kWh) – 77.6 cents, valid for 7 years, but only

until 2015Table 6. Electricity prices in EEK per kWh excluding VAT

There is some uncertainty about the tariff structure (variable and fixed part) and connection fees.




Regarding connection to networks, the fees are cost-based; therefore the connection fee has to be calculated for every concrete connection case.

1.1.3.5 Price of water

The price of water has a very local character in Estonia. The average on 21 January 2002 was 19.06 EEK/m3 (excluding fixed fee; including 7.93 for water supply and 11.13 for sewage services) and 19.75 EEK/m3 (including fixed fee). During the year 2001 the price increase was 15%, and since 1992 the price has increased approximately 25 times.

1.1.3.6 Price of mineral fertiliser

The sale of fertilisers is a major financial contribution to the operations of a biogas plant, and it is therefore of great importance to estimate the value of the fertiliser on the market. The values of the plant nutrients N, P and K have been estimated from the informed prices of 27 typical mineral fertilisers on the market. Nitrogen,

kg/tonnes Phosphor, kg/tonnes

Potassium, kg/tonnes

Price EEK/tonnes

Comment

Ammonium nitrate (NH4NO3)

344 0 0 1,950

Kemira Power 20 200 35 100 3,650

Kemira Power 18 180 40 75 3,450

Classic Brand 26-0-16 260 0 160 2,690

Viking Brand Pro 4-18-40+micro

40 79 332 3,590


60 70 332 3,590


60 114 249 3,690


80 158 149 3,890


90 101 257 3,690


130 141 158 3,890

Viking Brand Grass 5-20-35+micro

50 88 291 4,090


40 79 332 3,690


60 70 332 3,690

According to information from

EAU




Nitrogen, kg/tonnes

Phosphor, kg/tonnes

Potassium, kg/tonnes

Price EEK/tonnes

Comment


60 114 249 3,750


70 75 291 4,090


90 101 249 3,750

Mono ammonium phosphate (MAP)

120 225 0 4,500

Potassium chloride (GMOP)

0 0 510 2,970

AS Fertimix 26-5-5 260 20 40 2,800

AS Fertimix 25-0-15 250 0 120 2,800

AS Fertimix 22-5-10 220 20 80 2,850

AS Fertimix 20-10-10 200 40 80 3,050

AS Fertimix 16-16-16 160 70 130 3,350

AS Fertimix 15-8-12 150 30 100 3,050

AS Fertimix 12-17-25 120 70 210 3,350

AS Fertimix 4-14-24 40 60 200 3,150

AS Fertimix 4-19-19 40 80 160 3,250

EEK/kg plant nutrient 8.00 16.00 6.25 - Calculated following an approximated

covariance analysis method

Table 7. Estimated value of the individual plant nutrients in mineral fertilisers on the Estonian market

For comparison it can be mentioned that the Danish prices for the pure substances N, P and K of mineral fertilisers are around DKK 5.00 per kg N, DKK 8.85 per kg P, and DKK 2.90 per kg K.

1.1.3.7 Value of CO2e quotas

The trade of CO2e quotas is in its very initial stages, and it is anticipated that the price will be around DKK 40 per ton. If Estonia’s GHG emissions remain below their Kyoto Protocol assigned amounts for the commitment period 2008-2012, Estonia can transfer parts of their assigned amount to other industrialised countries that have surpassed their emission budget. This transfer can take place either via JI or via a system of International Emission Trading.

1.1.3.8 General investment climate

The Estonian Kroon (EEK) was introduced on 20 June 1992 and was pegged to the German Mark: 1 DEM = 8 EEK. Since the change from DEM to EURO, the exchange rate is fixed as 1 EURO = 15.6466 EEK.




The annual inflation measured by the consumer price index has been as follows: Year 1998 1999 2000 2001 2002 2003 Annual average change in consumer price index

8.5% 3.3% 4.0% 5.8% 3.6%

Table 8. Annual change in the Estonian consumer price index Some information about EEK-based loans as of 31 March 2003: • The total average interest rate for short-term loans (up to 1 year) was 5.27% (including 6.31%

for the private sector), and 5.97% (including 8.43% for the private sector) for long-term (over 1 year) loans. The total average interest rate for

o 1- 5 year loans: 6.04% o 5-10 year loans: 6.65% o > 10 years: 5.57%

• The conditions for every new loan must be negotiated with the bank in question. The interest

rates for overdrafts are usually 7-11% plus a risk premium. For investment loans there are two options:

o EEK-based loans: the bank’s basic interest + marginal are used o For EURO-based loans: 6 months Euribor + marginal

Loan periods are usually up to 10 years, but can be negotiated together with guarantee, self-financing, and other requirements. There are six local banks active on the Estonian market. In Estonia the taxation of fuels and energy is quite modest. The only taxes are VAT and excise tax. There is also a pollution charge to be paid in connection with the consumption of certain fuels.

• The common VAT rate is 18% of the pre-tax price. At present, there are a number of exemptions made in the VAT Act:

o Firstly, the heat sold to private persons, housing associations, apartment associations, churches, congregations, or bodies and organisations financed from the state budget, a rural municipality or a city budget, as well as peat, fuel briquettes, coal or firewood sold to private persons are taxed at a rate of 5%. From 1 July 2007 onwards the rate for these commodities will be 18%.

o Secondly, the electricity generated by wind and hydro-electricity is not taxed with

VAT (officially the rate is 0%). This rate will be replaced with the 18% rate from the day Estonia joins the EU.




• The excise tax is levied mainly on the motor fuels. At present, only light fuel oil is taxed at 420 EEK/1000 l. As in the accession negotiations with the EU no transition period was given on this item, Estonia has to introduce all EU minimum rates of excise taxes from the day it joins the EU.

• As stipulated in the Pollution Charge Act, pollution charge rates for releasing pollutants into

ambient air are as follows (EEK/t):

Pollutant 2002 2003 2004 2005

SO2 79.00 95.00 114.00 137.00

NO2 182.00 218.00 262.00 315.00

CO 11.00 14.00 16.00 20.00

Solid particulates 79.00 95.00 114.00 137.00

VOC 182.00 218.00 262.00 315.00

CO2 6 7.50 7.50 7.50 11.30

Table 9. Estonian pollution charge rates for releasing pollutants into ambient air – all figures in EEK per ton

1.2 General description of the case farm, AS TALLEGG

1.2.1 Presentation of AS TALLEGG AS TALLEGG is one of the 52 Estonian “IPPC farms”. Case farm AS TALLEGG

Att.: Technical and Development Manager, Mr Raul Raud

Saha tee 18

Loo

EE-74201 Harjumaa

Estonia

Tel. +372 610 7019

Mobile: +372 51 88 049

Fax: +372 610 7069

E-mail: [email protected]

The farm has around 600 employees, and in addition to the main production units for the production of eggs and poultry meat it includes a slaughterhouse, a feed mill and a hatchery. The farm has no shops, but a sales unit has subsidiaries in Latvia and Lithuania. They produce 100%

6 This charge shall be paid if the total rated thermal input of the combustion plants of a source of pollution from an energy

undertaking is greater than 50 MW. Combustion of bio-fuel, peat and waste is exempted from the CO2 tax.

mailto:[email protected]




of the broiler meat and 35% of the eggs for the Estonian market. The farm has no land. The farm is managed by the Director, Mr Kalvar Kase (Estonian), and the board of management includes 3 Finns and 1 Estonian. The board of directors is made up exclusively by Finns - delegated by the main owner, HK Ruokatalola. Accounts are published in the Annual Report. The production facilities of TALLEGG are situated at 2 places: the headquarters is situated in Loo, and further facilities are found in Rannamõisa 50 km from Loo and 15 km west of the Tallinn centre. • The Loo facilities are responsible for the entire egg production and 30% of the broiler

production (all within an area of 5 km2). • The Rannamõisa facilities produce 70% of the broiler production (within a radius of 10 km) and

includes the slaughterhouse. • Half of the broilers are processed on the farm into ready meals, and the rest are sold as deep-

freezed, but further un-processed. • A company is hired to elaborate an IPPC application for the farm. The main problem is the

disposal of manure: It is unclear how the exact regulations in this area will be, and as the agreements with the companies taking the manure are short-term agreements, any problems will have to be dealt with by TALLEGG.

• Poultry farms are not eligible for support from structural funds in Estonia. • The main problems in complying with future EU legislation are as follows:

o Disposal of manure – around 20,000 tonnes of slurry and 15,000 tonnes of deep litter. TALLEGG has agreements with 2 companies (legally and economically separate from TALLEGG), who remove the manure. This solution is satisfactory to TALLEGG. The companies spread the manure onto the fields and ensure that it is turned into compost. However, this is not a very profitable operation for TALLEGG. There is a high content of P in the manure, and it is limited how much is allowed to be spread onto the fields per ha. The dry matter content is 10-20%. It is a matter of 1-year contracts with automatic prolongation.

o There are strong smells from the spreading of manure and there are more and

more complaints from the surroundings – Tallinn is growing and spreading. The spreading only takes place during spring and autumn.

o Rendering. Dead animals are collected in containers and picked up by the

rendering plant “Vania”. Amounts of dead birds and costs of rendering is informed via Heinar.

o Disposal of hens: Slaughtering and bone-meat for sausages. The farm kitchen

manages this.




o Slaughterhouse waste: Total amount of wastes is 4,500 tonnes (feathers, intestines, flotation fat). This is partly sold to fox farms – the size and income from the sales is informed via Heinar.

The farm received an offer concerning the establishment of a biogas plant from a German company around a year ago. It was estimated that a biogas plant would cost 80 mio. EEK, although investment support as in Germany was included. The farm does not receive electricity at one place, but perhaps at up to 200 places. This could make it difficult to use the electricity from a biogas plant. The manure from the Loo production is stored in 4 tanks of 2,500 m3 each. A biogas plant could be situated there. The production covers eggs and broilers as seen from this table: Livestock type Number of livestock in stables Broilers 965,450

Parent broiler stock (almost entirely the farm’s own stock) 43,000

Breeder chicks (bought from outside) 75,400

Layers 279,000

Chicks to be layers (bought from outside) 325,000

67,550 broilers of averagely 0,8 kg, or equal to 54 tonnes, die every year. 31,000 hens of averagely 1,5 kg, or equal to 46.5 tonnes, die every year. The farm comprises the following buildings: • 8 stables for layers (7 of them are currently used and one is under repair) • 10 stables for chicks – not all are in use (around 100 days’ production cycle) • 57 broiler houses each with space for 23,000 broilers. 6,5 cycles per year. The total annual

production amounts to more than 16,000 tonnes. The amount of manure produced at the farm is around 35,000 tonnes per year, divided between 20,000 tonnes of slurry and 15,000 tonnes of deep litter. The costs of handling the slurry are not informed; the handling is contracted to 2 companies. More information about AS TALLEGG is found in Annex A.




1.2.2 Description of main environmental and energy problems at AS TALLEGG The following main problems have been identified: • Disposal of manure – around 20,000 tonnes of slurry and 15,000 tonnes of deep litter.

TALLEGG has agreements with 2 companies (legally and economically separate from TALLEGG), who remove the manure. This solution is satisfactory to TALLEGG. The companies spread the manure onto the fields, or ensures that it is turned into compost. However, this operation does not seem very profitable. There is a high content of P in the manure, and it is limited how much is allowed to be spread onto the fields per ha. The dry matter content is 10-20%. The contracts with the companies are of 1-year duration with automatic prolongation.

• There are strong smells from the spreading of the manure, and there are more and more

complaints from people – Tallinn is growing and spreading. The manure is only spread during spring and autumn.

• Rendering. Dead animals are collected in containers and picked up by the rendering plant

“Vania”. • Disposal of hens: Slaughtering and bone-meat mass for sausages. This is managed by the

farm kitchen. However, in the future it may become too costly to slaughter the hens and more cost-efficient to kill them and get rid of them.

• Slaughterhouse waste: The total amount of wastes is 4,500 tonnes (feathers, intestines,

flotation fat). This is partly sold to fox farms. • The farm is without own crop fields, which could absorb the manure as fertiliser, and is

therefore dependent on agreements with neighbouring farms (via the 2 contracted companies). Today, the amount of nitrogen and other plant nutrients in the manure is thus given away for free.

• The farm has huge energy consumption for heating, feeding and ventilation. The costs of this

energy consumption could be reduced by the use of own biogas for heating and/or production of electricity, and the dependence on external supplies would be decreased.




2 METHODOLOGY This feasibility study was prepared following the preparation of a similar study for the pig production farm AS EKSEKO in the period April 2003 to November 2003; in early 2004 Carl Bro reported that remaining funding in the project would enable the elaboration of the present feasibility study in a simplified manner, i.e. re-using much of the background information, methodology, etc. from the EKSEKO feasibility study. A mission to Estonia was conducted in the period 19 to 23 April 2004 in order to collect information via meetings with the AS TALLEGG farm itself and the company “Bio Projekt”7, who had been established to mature the biogas project based on manure from AS TALEGG. The companies EN-PRO and Estonian Agricultural University took part in some of the meetings, and have provided further information for the present feasibility study after the mission. 2.1 Literature Literature consulted for the present study includes: • Council Directive 96/61/EC of 24 September 1996 concerning integrated pollution prevention

and control • Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters

against pollution caused by nitrates from agricultural sources • Dansk Bioenergi (In English: Danish Bio Energy). Magazine about energy from livestock

manure, straw, wood and waste. Issued 6 times a year by Biopress. Several issues were consulted.

• Gravsholt, Hans (Editor). 2002. ”Håndbog for Driftsplanlægning” (In English: Handbook for Farm Management). Issued by Landbrugsforlaget, The Danish Agricultural Advisory Service, Århus. 176 p.p.

• Joint Implementation and Clean Development Mechanism Projects. Version 1. 2002. Issued by Danish Energy Authority.

• Nielsen, Lars Henrik, Kurt Hjort-Gregersen, Peter Thygesen og Johannes Christensen. 2002. Socio-econmic analysis of centralised Biogas Plants – with technical and corporate economic analysis. Report No. 136. Danish Research Institute of Economics. Copenhagen. 130 p.p. including English summary.

• www.carboncredits.nl • www.pointcarbon.com

7 The company Error! Unknown document property name. is officially registered by OÜ MELANELL and

TERTS on 5 August 2003 in the Estonian company register as a non-profit company with code 80191304, with Mr Ardo Lass, Jõelähtme vald, Harjumaa, as chairman of the board, and with the purpose to work with handling of organic waste.

http://www.carboncredits.nl/

http://www.pointcarbon.com/




2.2 Discussions and interviews The following people were consulted in connection with the present study: • Mr Raul Raud, Technical and Development Manager at AS TALLEGG • Mr Ardo Lass, Jõelähtme vald, Harjumaa, President of Bio Projekt, owner of OÜ MELANELL • Mr Indrek Tiidemann, Manager of TERTS and partner in Bio Projekt. • Mr Andres Annuk, Estonian Agricultural University • Mr Heinar Nurste, Head of EnPro Engineers Bureau Ltd.




3 PRE-CONDITIONS OF THE POTENTIAL BIOGAS PRODUCTION AT AS TALLEGG

3.1 Estimation of available biomass A correct estimate of the available amount of biomass is very important in order to calculate the possible biogas production. The following table shows the available, identified amounts of biomass at and around TALLEGG as stated by the Estonian Agricultural University. Source Organic waste Amount, ton/year Distance, kmAgriculture • Straw

- from whole Harju county

- of which

- of which

• Vegetables, fruit wastes

• Deep litter

- cattle farming

- of which

- poultry farm Tallegg

- pig farming

• Slurry - poultry farm Tallegg

49,000

3,062

760

980

30,800 7,700

15,000 2,000

20,000

40 km radius

10 km radius

5 km radius

20 km radius

20 km radius

10 km radius

20 km radius

20 km radius

Slaughterhouses • Feathers, intestines, flotation fat from Tallegg

• Stomach content, etc.

4,500 1,000 15

Ready made food • Oil from deep frying 60 20 km radius

Wine and alcohol •Yeast 20 20

Dairies • Whey

• Waste from cheese production

1,200 20

15

15

Fishing industry • Wastes from fish handling (bones, skins, etc.) 15,000 20 km radius

Catering • Food wastes 4,000 20 km radiusTable 10. Estimated amounts of organic waste at and around TALLEGG.

In addition to the biomass stated in the table there are 100.5 tonnes of dead animals per year as mentioned in section 1.2.1. As straw is not an ideal feed for a biogas plant, in the following calculations we will only include the other biomass types mentioned (amounts indicated with bold figures). It is roughly estimated that all of the mentioned kinds of biomass can be found within a reasonable distance from the potential location of the biogas plant.




3.2 Potential biogas production Given the estimated biomass amounts mentioned in section 3.1 the potential methane production can be estimated as seen in the following table: Type of biomass Tonnes DM, % Tonnes

DM % VS

Tonnes VS

m3 CH4/t VS

m3 CH4

Deep litter, pigs 2,000 32% 640 80% 512 290 148,480

Deep litter, cattle 30,800 32% 9,856 80% 7,885 250 1,971,200

Slurry, hens 20,000 12% 2,400 80% 1,920 290 556,800

Deep litter, broilers 15,000 40% 6,000 80% 4,800 290 1,392,000

Vegetable waste 980 15% 147 80% 118 290 34,104

Whey 1,200 3% 36 80% 29 320 9,216

Food wastes 4,000 12% 480 80% 384 400 153,600

Oil from deep frying 60 80% 48 90% 43 750 32,400

Yeast 20 15% 3 80% 2 320 768

Waste from cheese production

20 15% 3 80% 2 320 768

Slaughterhouse waste 4,500 15% 675 80% 540 450 243,000

Dead animals 101 40% 40 80% 32 560 18,010

Waste from fish processing

15,000 25% 3,750 80% 3,000 150 450,000

Flotation sludge slaughterhouse

1,000 25% 250 80% 200 450 90,000

Total 94,681 25,69% 24,328 16,267 5,100,346 Table 11. Estimated potential methane production

Assuming an extra 12% methane production/capture from storage and conversion (?) to biogas (65% methane in biogas), the estimated biogas production would be 8,788,288 m3 per year! The value of the biogas depends on its use; conversion to electricity would produce 2,36 kWh per m3 biogas, but would require the investment in a generator. It seems most relevant for AS TALLEGG to combust the biogas in an existing boiler house and produce heat from it, which could be done practically without any investments. Table 12 shows the value of the biogas, assuming it would save the purchase of natural gas used at present in the boiler house.




Basis 1,000 m3 biogas

produced

Estimated value of the biogas, replacing purchase of natural

gas, EEK per 1,000 m3

Estimated gross value of the biogas, replacing purchase of natural gas, EEK in total

Biomass from AS TALLEGG and external sources

8,788 1,170 10,281,960

Table 12. Potential value of biogas production if replacing the purchase of natural gas. Prices are without VAT.

However, around half of the energy in the biogas would be needed for process heat, i.e. to warm up the pressure sterilisation unit, the sanitation tank and the digesters, which means that actually the values in Table 12 should be divided by 2!! Table 13 shows the value of the biogas, assuming it would be converted into electricity and thereby saves the purchase of electricity.

Basis 1,000 m3 biogas

produced

Estimated net energy effect8 of

the biogas, if converted into electricity, kWh

per 1,000 m3

biogas

Estimated gross energy effect of

the biogas, if converted into electricity, kWh in total per year

Value of the electricity, if sold to the grid, EEK

per kWh

Value of the electricity, EEK in total per year

Biomass from AS TALLEGG and external sources

8,788 2,360 20,739,680 0.776 16,093,992

Comparing Tables 12 and 13 it becomes evident that the economic advantage of converting the gas into electricity would be in the area of EEK 11 million per year, which seemingly would be more than sufficient to cover the investment in gas generators. It is emphasised that additional to the potential value of the sales of electricity as seen from Table 13, there would be sufficient excess heat also for the operation of the biogas plant including separation of the digested biomass; this is not the case if the biogas is converted into heat. An estimated amount of 12 million kWh of electricity is around the double of the consumption at AS TALLEGG. However, due to the existing Estonian energy legislation how big the production is compared to the consumption would be without importance.

8 With reduction of heat used for heating of reactor tanks etc. – stated by Director Torben Bonde of Green Farm Energy.




3.3 Potential production of mineral fertilisers As it appears from the general farm description in Annex A AS TALLEGG leaves the manure to 2 companies. During the Soviet era mineral fertilisers were cheap, and in the 1990’ties there was only a limited market in Estonia for mineral fertilisers. However, in December 2000 the Estonian Plant Production Inspectorate had no less than 229 commercial fertilisers registered, and it is now common practice to use fertilisers in the plant production, although fertilising is often a question of how much fertiliser the farmer can afford rather than a question of what the norms prescribe. Table 13 shows the amount of plant nutrients in the various types of biomass.

Kg per tonnes Kg in total Tonnes biomass N P K N P K

Deep litter, pigs 2,000 7.87 3.2 8.81 15,740 6,400 17,620

Deep litter, cattle 30,800 8.35 1.53 10.89 257,180 47,124 335,412

Slurry, hens 20,000 6.3 2.34 2.59 126,000 46,800 51,800

Deep litter, broilers 15,000 43.6 13.06 30.57 654,000 195,900 458,550

Vegetable waste 980 10 5 15 9,800 4,900 14,700

Whey 1,200 15 18,000 0 0

Food wastes 4,000 30 20 120,000 80,000 0

Oil from deep frying 60 0 0 0

Yeast 20 70 1,400 0 0

Waste from cheese production 20 10 200 0 0

Slaughterhouse waste 4,500 24 24 108,000 108,000 0

Dead animals 101 24 24 2,424 2,424 0

Waste from fish processing 15,000 15 225,000 0 0

Flotation sludge slaughterhouse 1,000 10 1.5 10,000 1,500 0

Total 94,681 1,547,744 493,048 878,082Table 13. Content of plant nutrients in various types of biomass. Figures for manure are based on Danish

norms, while most of the other figures are based on qualified estimates.

Table 14 shows that on a rough estimate there would be 1,548 tonnes of pure nitrogen in the digested biomass, 493 tonnes of P and 878 tonnes of K. The estimate involves a great deal of uncertainty, as the biomass types, except for the manure, have not been clearly described and as for some of them there are no standard figures for the content of plant nutrients. Table 14 shows an estimate of the value of the plant nutrients in the biomass after digestion and separation.




Nitrogen Phosphorus Potassium

Tonnes plant nutrients in the biomass according Table 14 1,548 493 878

Value of the plant nutrients as commercial fertilisers according Table 7 8.00 16.00 6.25

Potential value with Estonian prices of plant nutrients, EEK 12,384,000 7,888,000 5,487,500

Do, in total 25,759,500

Potential value with Danish prices of plant nutrients9, EEK10 15,480,000 8,726,100 5,092,400

Do, in total 29,298,500 Table 14. Estimate of the value of the plant nutrients in the biomass after digestion and separation. Prices

are without VAT. No matter whether Estonian or Danish prices are applied, the estimate of the total value of the plant nutrients in the biomass would be higher than 25 mio. EEK. The value of the fertilising effect of the manure can only be activated if the fertilising effect (N, P and K) is brought to a concentrated form, comparable to commercial fertilisers on the market. It should be noted, however, that the value of the potassium would be difficult to realise, as it would be bound in a water fraction with only around 10% K. Further, it should be noted that the prices used are sales prices (prices for the consumer), and therefore it would be relevant to reduce the values by 40%, which is a good rule of thump when estimating the costs of sales and marketing in any business. On this background, below it is anticipated that the fertilisers would have a value of 12.1 mio. EEK (60% of EEK 12,384,000 + EEK 7,888,000), corresponding to 60% of the value of N and P fertilisers based on Estonian fertiliser prices.

9 Danish prices are 5 DKK per kg N, 8.85 DKK per kg P, and 2.90 DKK per kg K. 10 Assuming an exchange rate of 2 EEK per 1 DKK.




4 THE PREFERRED SOLUTION A number of possible solutions for the TALLEGG farm transpire from the above. However, it seems that a combined biogas and separation plant is indispensable to achieve the goal of increased profit and remediation of emissions. Inclusion of the fallen stock (dead animals) in the biomass is also a promising aspect. The pros and cons of introducing biogas production are as follows: • Rendering plants require large amounts of heat for processing the animal cadavers and the

animal waste processed by the rendering plant. The heat is used for boiling the animal waste and for drying the products. However, if combined with a GFE plant the heat for boiling the waste can be generated from waste heat from the motor/generator unit, and further heat can be saved because it is not necessary to dry the rendered products such as MBM. Instead, they can be processed in the GFE type plant as pulp.

• The plant will be able to use own produced energy in the form of electricity and heat and thus save purchase of energy.

• Further income to the rendering plant can be gained by selling the refined nutrients directly to the farmers or indirectly through fertiliser companies.

• The wastewater of the rendering plant is also treated in the GFE type plant. The waste, such as slurry, solid manure and animal offal are treated economically and effectively in accordance with EU regulations, in particular the 1774/2002/EEC. In the following this option, called GFE type, is further detailed. 4.1 Summary of plant investments etc. In order to digest the biomass in question four bioreactors of 2,500 m3 will be needed. The reactors are combined in series with a possibility for parallel coupling of one or two reactors. The digested waste shall be stripped for ammonia to less than 50 ppm. • 4 bio-reactors of 2,500 m3 • Final N-stripping In order to convert the 8.9 mio. m3 biogas to electricity and heat, two Jenbacher 320 motor/generator units including kettle installations etc. are needed. • 2 Jenbacher 320 motor/generator units • The separation of P shall mainly be performed by means of decanter centrifuges. Two Pieralisi decanters are suggested. • 2 decanter centrifuges




The Green Farm Energy A/S SCADA programme for supervisory control and data acquisition of the whole plant along with pipes, pumps, accessories, etc. • SCADA, supervisory control and data acquisition • Pipes, accessories, etc. A number of different tanks for nutrient storage, acids, lime, PAX, polymers, etc. are also needed. • Tanks for additives, etc. Finally, a house for the installation of all technical equipment, a so-called boiler house, will be necessary. If the full range of the standard GFE type plant shall be utilised, a pressure cooker, a stripper and a sanitation tank including an absorber and possibly a K-filter are also needed. • Pressure cooker • Stripper, sanitation tank and absorber The above excludes roads, permits, electricity connections, etc. Chapter 5 presents the main component of the biogas plant for AS TALEGG, and Chapter 6 gives the estimated economy.




5 DESCRIPTION OF FUNCTIONS The plant to be operated on the basis of slurry, rendered by-products, industrial wastes, silage, etc. will have to possess a number of units. The general outline begins with facilities for collection of wastewater and rendered products, and facilities for pre-treating the wastes before anaerobic digestion in a series of bioreactors. During the digestion in bioreactors the ammonia content is carefully controlled as are other possible volatile components inhibitory to the biogas process. The running parameters such as temperature, pH, pressure, microbial consortia and media composition are also controlled through the pumps, valves and inlets under the regulatory framework of the whole plant. A monitoring programme connected to all units in the plant ensures an efficient running of the plant. Finally, the nutrients are refined to fertilisers of commercial value. The function description should includes flow diagrams, drawings and PI-diagrams. For the purpose of this project proposal, however, only simple representations are provided. 5.1 Reception station for wastewater The slurry and liquid wastewater is collected in a reception tank. The tank is equipped with: • Level control • Submerged stirring to ensure a stirred content. The level control is used to ensure that the

tank is not stirred when the level in the tank is below the stirrer • An inlet The reception tank is made of concrete, and the lid is supported by a central column. The tank is ventilated. 5.2 Balance installation A balance installation is installed to allow registration of a possible external supply of biomass. Data from the balance shall be used for documentation of incoming biomass and for running the plant. 5.3 Silo for quick lime with dose adjustment A silo for storage of quick lime is established. If needed, the biomass may be pre-treated by physical and thermo-chemical means. The lime can be added to the screw conveyor feeding the pressure sterilization unit. The lime increases pH and ensures an effective hydrolysis of the biomass. The amount of lime depends on the quality of the biomass to be pre-treated. The silo is equipped with a level control for filling and for bridging and automatic breaking of possible bridges with pressurised air. It is also equipped with a filter to prevent dust emissions during filling of the silo. The filter includes a vibrator to prevent clogging.




5.4 Pressure sterilisation and hydrolysis unit The alkali pressure sterilisation and hydrolysis unit (the pressure cooker) shall eliminate potential microbial pathogens in MBM and other biomasses and hydrolyse the structural components in the biomass in order to render it decomposable by the anaerobic microbial consortia in the bioreactors. A pressure cooker of 12 m3 in black steel is provided. The pressure cooker consists of a unit with an elongated vertical double pipe with a stirrer in the centre of the chamber. Heating of the unit is provided through direct injection of steam and through indirect heating via a cape. The pressure cooker is filled according to the weight of the biomass. The biomass is by default treated at the following conditions: Animal offal: • Pressure: 3 bar • Temperature: 133o C • Retention time: 20 minutes Structural organic matter (solid waste): • Pressure: 6 bar • Temperature: 160o C • Retention time: 40 minutes At the end of a treatment cycle the pressure is reduced and the media is pumped to the bioreactors. The pressure cooker is placed on a balance in order to control the filling by weight. All pipes and connections to the cooker shall be flexible to allow for the weighing. The air let out from the cooker is diverted to the absorber for collection of ammonia and for preventing smell. Opening a throttle valve in the bottom of the cooker automatically empties the pressure cooker. While being emptied the cooker can be flushed with wastewater. The design and running of the cooker is designed to allow for the treatment of different batches of MBM and other types of waste. This ensures an optimal use of the cooker. However, it also means that the system shall be capable of handling media with different dry matter contents.




When treating MBM solely, it may be treated as dry powder or as a liquid pulp, while the usual means of treating other media will be in a liquid form (possibly with addition of wastewater). The cooker is placed in a separate room in the boiler house, and a screw conveyor diverts the media to a mixing tank after the pressure cooker. The conveyor is designed to transport solid as well as liquid biomass. 5.5 Mixing tank The biomass from the pressure cooker has a high dry matter content and a high viscosity. In order to make the biomass pump able and well-suited to pumping into the stripper 1 and bio-reactors, it is necessary to dilute it with either reject water from the plant or with slurry. This is performed in the mixing tank after the pressure cooker. The outlet from the mixing tank is equipped with a macerator to ensure that possible remaining fibres are comminuted. The mixing tank is equipped with a top mounted stirrer. 5.6 Silo for animal offal or meat and bone meal A silo for animal offal or pulp is constructed. The silo is an upright (vertical) silo, which is placed near the pressure cooker and bioreactors. It is equipped with the necessary ventilation, dosing, and transport system. The silo has level controls, controls for bridging and automatic breaking of the bridges with pressurised air. The silo may also be supplied with a filter to prevent dusting (in case of MBM being handled as powder). The filter contains a vibrator to prevent clogging. From the silo the MBM or pulp is transported directly to the pressure cooker or to the bioreactors in a closed screw conveyor. 5.7 Stripper 1 and sanitation tank Some wastewater to be treated in a biogas plant contains ammonia, and in addition to this ammonia already present in the waste before digestion some ammonia is released during the digestion. This ammonia, which is inhibitory to the biogas process, may be removed at three stages of the process in order to ensure an optimal performance of the bioreactors. The ammonia is furthermore concentrated to a commercial fertilizer. The first stripping is in the stripper and sanitation tank where the ammonia already present in the waste is removed. At the end of the digestion the biomass is stripped a final time to a low concentration of less than 50 ppm ammonia. Also, the bulk of the ammonia formed during the digestion is removed concomitantly with the running of the reactor.




Besides performing the first stripping, the striper 1 tank is also used for a final hydrolyses and sanitation of the waste. It is therefore run at a temperature of app. 80o C with a mean hydraulic retention time of 4-8 days. The tank is supplied with a stirrer to ensure a complete mixing of the biomass having a dry matter content of maximum 12-15%. The stirrer may be reversed to prevent fouling of the blades and axis of the stirrer. The stirrer is constantly running and is reversed by an automatic timer function. The tank is isolated with 150 mm rockwool and covered with steel plates. The ventilation air form point suctions in the house and ventilation from the pressure cooker is led to the stripper 1. Sub-merged aerators are installed in the tank to be able to inject ventilation air under the surface. The tank is supplied with a top mounted stirrer and emergency overrun. A pressure transmitter further supplies the tank with level control. A pressure transmitter is supplied as a safeguard against overpressure of the air above the waste surface. A bridge is mounted on top of the tank so it is possible to service the installations from the bridge. The biomass is pumped from the stripper 1 and sanitation tank to the bioreactors. The stripped air is led to the absorber, where ammonia is removed together with smelling substances. The stripper is heated by means of a spiral inside the tank and steam ejectors. It is supplied with a rinsing system to combat foam and floating covers. 5.8 Bioreactor 1 Four bioreactors each with a volume of 2,500 m3 (a total of 10,000 m3) are constructed. They can be run in series or in parallel. They are constructed as gas-proof closed steel tanks with a concrete floor and a top cone. Over the surface of the liquid a free space serves as collection of biogas and to combat floating covers and foam, the latter by means of a rinsing system. The tank is isolated with 150 mm fibre insulation and is covered with profile steel plates. Inert particles such as sand or bones settled in the tank are pumped out at regular intervals. The reactors are equipped with top mounted stirrers to ensure a complete mixing of the biomass with a dry matter content of 12-15%. Two baffles prevent horizontal circulation and ensure vertical




circulation. The stirrer may be reversed to prevent fouling of the blades and axis of the stirrer. The stirrer is constantly running and is reversed by an automatic timer function. The reactors are supplied with two outlets for biomass and an emergency outlet at the top. The outlets at two depths allow for outlet at the most appropriate level. A possible level with floating cover or foam can thus be let in the reactor for longer time and thus increase the gas yield. The efficiency of the reactors is proportional to the organic load. The reactors are thus designed to a maximum dry matter content of 12-15%. The reactor is heated with an internal spiral in several sections. They can also be used for cooling. The heating system maintains a constant temperature in the reactor. A hatch at the top with light is used for inspection. The reactors are equipped with level control by means of pressure transmitters and pH and temperature monitoring. The reactors can be run at mesophilic as well as thermophilic temperatures. It is important that the temperature variations are minimal (max. app. 1o C). Gas is taken out from the top of the reactors and led to gas cleaning for use in the motor/generator units. The digestion of MBM releases ammonia and one or two of the reactors are thus equipped with a shunt to remove excess ammonia. It is possible to add organic acid to the reactor as well as liquid biomass in the form of vegetable oils, etc. A bridge is mounted on top of the reactor. Hence, it is possible to service the installations from the bridge. 5.9 Bioreactor 2 Bioreactor 2 is established as bioreactor 1. 5.10 Bioreactor 3 Bioreactor 3 is established as bioreactor 1. 5.11 Bioreactor 4 Bioreactor 4 is established as bioreactor 1.




5.12 Shunt The use of a shunt may be included in the total plant outline. The shunt removes ammonia directly from the operating bioreactors. The ammonia is subsequently condensed to a liquid N-fertilizer and pumped to a store. The shunt consists of pumps, columns, heat exchangers and a cooling tower. The biomass in reactors 1 and 2 is continuously circulated through the shunt. 5.13 Buffer tank before decanter Digested biomass from the bioreactors is diverted to a buffer tank before the decanter by gravitation. The automatic valves at each bioreactor opens and the biomass gravitates to the buffer tank. The biomass is subsequently dewatered in the decanter and remaining dry matter and P is extracted. The tank is supplied with passive ventilation and level control. The inlet to the tank contains an automatic valve to ensure that it cannot be overfilled. At the max level the valve closes. The tank is insulated. 5.14 Pax and polymer addition In order to efficiently precipitate P from the biomass it may be necessary to use additives such as PAX and polymers. Tanks for these additives are supplied. The additives are added before dewatering in the decanter. Two smaller mixing tanks are established for this purpose. The small mixing tanks are equipped with stirrer and dose pumps. 5.15 Decanter The digested biomass is dewatered in a decanter, where remaining dry matter and P is extracted. The dry matter content of the sludge is app. 30% with a P content of about 5%. The inlet to the decanter is made through a closed system of pipes. The decanter separates the biomass into a solid and liquid fraction. The liquid fraction is gravitated to a buffer tank. The liquid contains some ammonia, which is stripped off in the final stripper step. A timer controls the decanter and the level in the buffer tanks before the decanter.




The inlet is performed by eccentric pump. A flow gauge constantly measures the flow to the decanter. 5.16 Transport The sludge from the decanter is conveyed to containers outside the boiler house, where the decanter is installed. 5.17 Buffer tank for reject water The liquid from the decanter gravitates to a buffer tank, which ensures that it may be used for rinsing and dilution of biomass if necessary. The final stripper is fed from this buffer tank. The tank is insulated and is equipped with running level control. The tank is connected to the ventilation system. The capacity is set to ensure a stable running of the stripper 2. 5.18 Stripper and absorber 2 The stripper 2 shall remove the remaining ammonia to a low level; less than 50 ppm. Reject water from the decanter is stripped in the stripper 2. The stripping is performed using steam under vacuum. The ammonia is led to a condenser where it is collected in liquid form and pumped to the ammonia store. The stripper column is heated through several means. The principle is to use as much waste heat as possible. The concentration to a 25% ammonia solution is common to the shunt and stripper 2. This ammonia is mixed with the ammonia sulphate from stripper 1 resulting in a final 25:5 NS fertilizer. The stripper 2 and the shunt use the same cooling tower for condensing of the ammonia. 5.19 Reject water tank The reject water is diverted to the storage tank. A part of the reject water may be used as rinsing and cooling water as well as water for dilution of biomass. The surplus water may be used for field irrigation or disposed off through the common waste system. 5.20 Gas store A low-pressure gas store is used to eliminate possible fluctuations in the gas production. This ensures an optimal use of the biogas.




The gas storage facilities are located in a separate building of steel plates. The facilities consist of a number of gasbags each of 1,000 – 1,500 m3. The bags are fastened to the roof construction. Condensate is diverted to a well. The store is supplied with radar to monitor the degree of filling. The gas store is secured against overpressure. 5.21 Gas scrubber The produced biogas includes hydrogen sulphide, which shall be removed before incineration of the biogas in the motor/generator units. The biogas is diverted to the bottom of the gas scrubber and is taken out at the top. Hence, the biogas passes a moist filter supporting a bio film of bacteria. The sulphur oxidising bacteria in the bio film oxidises the sulphide to sulphate. The sulphate is a salt and thus soluble in water. The water is taken out and added to the ammonia fertilizer in order to arrive at a 25:5 NS ammonia sulphate fertilizer. The filter is continuously wetted in order to provide for good living conditions for the bacteria. A pump at the gas scrubber circulates the liquid over the filter material. The oxidation of sulphide produces sulphuric acid decreasing the pH value. At regular intervals, the liquid shall be pumped to the ammonia store and substituted by new liquid in the form of e.g. reject water or gas condensate. The gas scrubber is supplied with safety measures against overpressure so that the bioreactors and the gas store are secured against overpressure and vacuum. The sulphide oxidizing bacteria need oxygen, and atmospheric air is added to the gas scrubber by means of a capsule blower. It is very important that the content of oxygen in the biogas is carefully controlled so as to avoid an explosive mixture of gases. An oxygen electrode in the exit gas is used to control the addition of atmospheric gas. The gas quality in terms of methane, carbon dioxide and oxygen content is controlled in a gas analytical device.




5.22 Absorbers A and B In absorber A, the ventilation air from stripper 1 and from the point sources collected by the ventilation system is cleaned for ammonia by absorption in a dilute solution of sulphuric acid. The absorber shall also remove smell from the ventilation air and it is therefore built in two sections, where the second section is operated by adding a base in absorber B. Both absorbers are air absorbers consisting of a packed column, which is rinsed with acid and base, respectively. Pumps are provided to circulate the liquid over the absorbers. They are secured by an automatic shutdown by level transmitters at the bottom of the absorber. A pH gauge of the liquid in absorbers A and B and dose pumps ensure that the fixed pH is maintained. The pump at absorber A re-circulates the liquid over the absorber. Ammonia is dissolved in the acidic liquid, which is removed at frequent intervals. The pump removing ammonia is also used to pump the ammonia containing liquid to the ammonia store. Two automatic valves regulate the use of the pump for either purpose. 5.23 Sodium hydroxide tank Sodium hydroxide is used as base in absorber B. Pumps are acid proof piston diaphragm pumps. 5.24 Sulphuric acid tank Sulphuric acid is used in absorber A and is contained in a closed tank. Ventilation is supplied with a condenser to ensure that moist air does not enter the tank. A continuous level control is used to secure the pump through automatic shutdown. 5.25 Liquid ammonia tank The ammonia from the treated biomass is concentrated and stored in a tank for liquid ammonia, i.e. a 25% ammonia solution in water. The ammonia stems from the shunt and the stripper 2 unit. The ammonia is subsequently sold directly or indirectly as a commercial N-fertilizer. The tank is equipped with continuous level control.




The tank is used as an interim storage for ammonia and has a capacity for one month’s production. 5.26 Tank for liquid biomass The tank for liquid biomass is used for various types of liquid biomass, which can be digested in the plant. This could typically be vegetable oil from e.g. olive mills or margarine, etc. Some of these oils have a high viscosity and the tank is therefore equipped with a heating system to ensure a biomass substance suitable for being pumped. The tank is equipped with a top mounted stirrer to prevent stratification. The temperature can be monitored. The tank contains level control to be used in connection with filling and emptying operations and to indicate alarm levels. A pump is used to pump the liquid biomass to the various bioreactors. Automatic valves on the inlet pipe regulate distribution between the reactors. The inlet pipe is heated to prevent the biomass from cooling off in the pipe. 5.27 Gas motor/ generator units Two motor/generator units are necessary to incinerate the biogas produced and to produce the electricity for sale and the process heat for biogas production and heat sales. The sale of electricity is the basis for the income of the plant. The Jenbacher motors present an electrical efficiency of 41.9% and a thermal efficiency of 45.2%, i.e. a total efficiency of 87.1% of the primary energy. The remaining primary energy is lost in the motors and cables. An emergency cooler is installed where excess heat can be disposed off in case of running failures of some of the main heat consuming components in the plant. The main priority is to produce electricity rather than heat. The motors have a cooling system on the cape (90°/70°) and the heat will be used for process heat and possibly for heating of buildings. The exhaust gas is diverted to a recuperator for the production of steam.




A heat exchanger between the heat and steam systems allows for the production of warm water from the steam. This exchanger is installed together with the recuperator. The motors are Jenbacher, type S 320 GS-B.L. The silencer is installed on the exhaust system of the motors. It is provided in two parts and is installed before and after the kettle. The motor room contains ventilation for convection cooling. The ventilation system has sound insulation. Each motor produces approximately 1,048 kW electricity and 1,200 kW heat. The heat energy is partly steam and partly warm water. 5.28 Gas kettle In order to start the bioprocess it is necessary to add steam and heat to the plant. Through incineration of biogas in a kettle a thermal efficiency of 80-85% is achieved. The steam generator shall produce steam for the process. The kettle is also equipped with an oil burner. When the gas production has reached the level required for the running of the gas engines, the kettle will be stopped. A store for superheated water is used to accumulate steam, as the use of steam is only periodic while the production of steam is continuous. The tank is designed for 11 bars and 180o C. The recuperator is a smoke gas heat exchanger working as a traditional steam generator. The recuperator is fuelled by smoke gas from the motor/generator units. The steam from the recuperator is used in the plant where a high temperature heating is required. The heat system includes a water treatment facility preparing tap water to soft water to be used for steam production. 5.29 Gas torch A surplus gas production can be burned in a gas torch. The torch consists of two units. The torch is also used during the start up of the plant when the gas quality is poor.




The torch ensures that no gas is emitted to the local surroundings during e.g. servicing of the plant. 5.30 Tank for organic acid In order to permit adjusting the pH downwards in the bioreactors, a tank for organic acids is provided. A pump on the tank diverts the acid to bioreactors 1-4. The dose in each bioreactor is regulated via automatic valves. The running of the pump can be controlled by a timer or by the pH in the bioreactors. The tank is equipped with level control and passive ventilation. 5.31 SCADA, supervisory control and data acquisition The GFE supervisory control of the plant is performed centrally from the control room of the boiler house. The main switchboard and the control and supervisory board are placed in separate rooms. The control is programmed in PLC and supervision and operation are performed via a PC in the control room. A number of local boards are placed at selected points of the plant, e.g. at the machine installations. At these, there is a possibility to switch in a laptop PC. This can also be used for supervision and control equivalent to the PC in the control room. The laptop PC may also serve as external communication with the plant via the telephone system so that the manager in charge can supervise the plant from an external location. A lightning plant and spotlights illuminates the plant area. 5.32 Boiler house The heavy machine components are installed in a house for such technical installations. The house also includes an office, a workshop, control boards, bathing and toilet facilities. The compressors and blowers for the ventilation system are also placed in the boiler house. A small laboratory with dish machines, a ventilation cupboard, an oven, glassware etc. is also provided. 5.33 Pumping station for rain water Rainwater from the surrounding consolidated areas is collected in a pumping station and led into the collective system for rainwater. The pumping station is selected in favour of a gravitation pipe for safety reasons. The run off can then be stopped at the pumping station. The pumping station is supplied with power from the biogas plant. The control is a level control with on/off operation of the pump.




5.34 Sanitary wastewater The sanitary wastewater from the plant is collected in a gravitation pipe and is diverted to the collective system for wastewater treatment. 5.35 Plan of the GFE type plant See Annex C.




6 ENVIRONMENTAL IMPACT By establishing a biogas plant a number of positive environmental impacts are achieved from energy production, reduced emission of greenhouse gases and easier nutrient up-take in the crops. 6.1 Energy production The biogas plant at AS TALLEGG will net replace around 20 mio. kWh (20,739,680 kWh produced minus 0.5 - 1 mio. kWh consumed by the plant). On this basis, the reduced emissions of CO2, NOx and SO2 can be calculated, given the fact that the main energy source for electricity in the grid in Estonia is oil shale: Emissions SO2 NOx CO2

Assumptions Biogas g/MWh 65 720 0

Oil-shale g/MWh 2844 1080 1075000000

Difference Oil shale minus biogas g/MWh

2779 360 1075000000

Reduced emissions Reduced emissions from 20 MWh, Kg

55580 7200 21500000

Do, % 98 33 100 Table 15. Reduced emission following the biogas production at AS TALLEGG.

The production of energy from biogas will cause no ash production. The production of ash from coal is assumed to be 12% of the input coal, which equals around 965 tonnes/year. 6.2 Greenhouse gas emission Volatile solid in the manure and waste will cause a production of methane in the storage tanks and N2O in the fields when it is spread. Methane is as greenhouse gas 21 times worse than CO2 to the atmosphere and N2O 310 times worse than CO2. Digesting the manure will reduce the volatile solid in the manure resulting in a reduced methane production in the storage and N2O in the fields. Danish research has been carried out to estimate the reduction of CO2 equivalents by digesting manure and industrial organic waste11.

11 Reduction of greenhouse gases from manure and organic industrial waste from biogas treatment. DJF-rapport nr. 31. S. G.

Sommer, H. B. Møller, S. O. Pedersen. July 2001 (only a summary in English).




Type CO2 equivalent reduced per kg OM

Tonnes OM/year In total, tonnes CO2 per year

Manure 0.5485 15,117 8,292

Organic waste 0.5687 4,351 2,474

In total 10,766 Table 16. Saved CO2e emission from manure and waste.

Anticipating the plant nutrients will be available in a form comparable to mineral fertilisers and marketed as such, it will replace other mineral fertilisers used by farmers and thereby the CO2e production following mineral fertiliser production. For the Baltic countries it can be estimated that the reduction will be equivalent to 2.5 kg CO2e per kg nitrogen and 0.85 kg CO2e per kg phosphorus. Table 18 shows the total expected effect. Type Kg CO2e reduction per

kg plant nutrient12

Kg plant nutrient (Table 20)

In total, tonnes CO2e

reduction per year

Nitrogen 2.5 870,000 2,175

Phosphorus 0.85 158,000 134.3

In total 2,309.3 Table 17. Saved CO2e emission from the replacement of mineral fertilisers with plant nutrients in digested

biomass.

The total reduction in CO2e is the result of both a replacement of fossil fuel and less emission of greenhouse gases (CH4 and N2O) from storage and spreading of manure and waste. The total CO2e reduction from the biogas plant per year would be as follows: Type In total, tonnes CO2e reduction per year Replacement of fossil fuel (coal) with biogas 21,500

Reduction in greenhouse gases from storage and field 10,766

Reduction from replacement of conventional mineral fertilisers

2,309

In total 34,574 Table 18. Total reduction of CO2e emission.

6.3 Leaching and emission of plant nutrients The total amount of plant nutrients in the biomass was estimated in Table 14. The field effect of P and K in the manure would probably be very similar, no matter whether it comes from raw or digested slurry, but for other types of biomass used it would be possible to capture the P and K and use it for plant nutrition. 12 According to personal information from Ms. Anne Seth Madsen, NIRAS.




The field effect of nitrogen, N, in the manure would probably be raised from around 35% to around 80%, considering the spreading equipment and practices used today concerning the disposal of the manure from TALEGG. However, the utilisation of the plant nutrient in other types of biomass, hereunder in dead animals and fish waste, etc., would be changed from 0 to 80% following a digestion with separation and use as mineral fertiliser. The following table summarises the reduction in the leaching of plant nutrients following the establishment of a biogas plant at AS TALLEGG. Type of biomass

Tonnes N in total

Estimated raised

field effect of N, %

Reduced leaching, etc. of N, tonnes

per year

Tonnes P in total

Estimated raised field effect of P,

%

Reduced leaching etc. of P, tonnes

per year

Tonnes K in total

Estimated raised field

effect of K, %

Reduced leaching, etc. of

K, tonnes

per year

Manure 1,053 45 474 296 0 0 863 0 0

Dead animals13 and other types of organic waste

495 80 396 197 80 158 15 80 12

Total reduction

870 158 12

Table 19. Reduction of leaching etc. of plant nutrients following the establishment of a biogas plant at AS TALLEGG.

13 According to Poulsen, Hanne Damgaard and Verner Friis Kristensen (eds.), 1998. Standard Values for Farm Manure, A

revaluation of the Danish Standard Values concerning the Nitrogen, Phosphorus and Potassium Content of Manure. DIAS

report Animal Husbandry no. 7, December 1998, 1st volume.




7 SUMMARY OF ECONOMIC IMPACTS In accessing the economic impacts we have used the following assumptions: Assumptions Figure Comments % dry matter in ideal biomass 12 With the identified biomass types it

would be necessary to re-circulate around 100,000 tonnes process water per year

Definitions according to EEC/1774/2002

Manure standards Based on Danish manure standards if available

Estonian manure figures are not available for all types of manure

Based on standard figures, including % methane in biogas

65%

Electricity sales price, EEK/kWh 0.77

Gross kWh per 1,000 m3 methane 3.88

Value of 1 kg pure N in mineral fertiliser, EEK

8.00 World market prices are around 75% higher

Value of 1 kg pure P in mineral fertiliser, EEK

16.00 World market prices are around 40% higher

Marketing and sales costs for fertiliser, %

40

Cost for rendering, EEK/ton 1,900

Subsidies for rendering, EEK/ton 0

Gate fees for other biomass, EEK/ton 500 This assumption is probably too high for biomass types as whey, but too low for biomass types as waste from fish processing

Investment cost per m3 biomass, EEK

1,000 Rough estimate

Value of CO2e quota, EEK/ton 80.0

Support from EU structural funds, % of investment

For Scenario 1 50% support to the net investment is anticipated, while Scenario 2 assumes 0% investment support

Depends on the formulation of the Single Programme Document




Assumptions Figure Comments Annual interest rate, % 5.75

Annual depreciation rate, % 6.25

Operation costs, EEK/m3 biomass 60.0 Rough estimate Table 20. Estimated investment costs for the GFE type biogas plant for AS TALEGG. The estimate

excludes roads, permits, electricity connections, etc.

It is emphasised that precise project proposals must be elaborated in order to obtain an exact price. The needed investment in some of the components depends on the placement of the biogas plant; especially if the plant is placed in connection with the existing manure storage tanks, it would be possible to save: • A reception station for liquid biomass • Partly the costs for a mixing tank • Probably a container for sludge from the scrubber The operating costs include: • Use of additives, labour and electricity as well as maintenance costs • The electricity consumption is in the range of 0.5 – 1.0 mio. kWh. • The use of additives in the form of polymers, sulphuric acid, quick lime and organic acids is

limited • The maintenance cost is estimated to 2.5% of the annual investment According to section 1.1.3.8 it would be possible to perform calculations with an interest rate for the capital of around 5.75%, and reasonable to use a depreciation rate of 6.25%. The used depreciation rate equals an average lifetime of the investment of 16 years. Table 21 shows the details of the estimated economy of the operation.




Scenario 1 – 50% subsidisation of the investment cost

Scenario 2 – no subsidisation of the investment cost

Production Biomass in total, tonnes

202,735 202,735

Of this category 2 material, tonnes

4,601 4,601

Of this other biomass, tonnes

22,280 22,280

% dry matter in the biomass

12% 12%

Production of biogas, 1,000 m3

8,788,288 8,788,288

Revenues, all figures in EEK per year Electricity 17,079,626 17,079,626

Fertiliser (value reduced by 40% due to sales and marketing costs) 12,162,259 12,162,259

Saved rendering costs 8,740,950 8,740,950

Subsidies and gate fees 11,140,000 11,140,000

Saved manure handling costs 0 0

Total annual revenues 49,122,835 49,122,835

Investments, EEK Gross investment 202,735,000 202,735,000

Value of the released CO2e quota 5,909,861 5,909,861

Saved alternative investments 0 0

Net support from EU structural funds 101,367,500 0

Net investment 95,457,639 196,825,139

Costs, EEK Operation costs 12,164,100 12,164,100

Interest payment on net investment 5,488,814 11,317,445

Depreciation 12,670,938 12,670,938

Total annual costs 30,323,852 36,152,483

Total economy Annual profit of the investment, EEK

43.384.7118,798,984

12,970,352

Table 21. Details of the estimated economy for a GFE type biogas plant based on manure from AS TALLEGG

The simple payback time would be around 2.5 and 6 years for scenario 1 and 2, respectively. As mentioned earlier, the biogas plant would theoretically bring additional benefits, including the




removal of weed seeds and pathogens in the manure, and a drastic reduction of the odour and nuisances from the storage and spreading of the manure. These benefits are impossible to quantify in money and are therefore not included in the estimation of the economic impact. However, it should be considered that the reduction of odours and nuisances from the production may together with the rendering of dead animals and the separation of the slurry be the benefits that could trigger an IPPC approval of the production in 2005! It is emphasised that the economic impacts showed in Table 21 are calculated on the basis of several assumptions and estimates, the verification of which are of vital importance before the final decision to establish the biogas plant.




8 ORGANISATION AND FINANCING 8.1 Organisation On 5 August 2003 OÜ MELANELL and TERTS obtained official registration of the company "Bio Projekt" in the Estonian company register as a non-profit company with code 80191304, with Mr Ardo Lass, Jõelähtme vald, Harjumaa, as chairman of the board, and with the handling of organic waste, with manure from TALLEGG and OÜ MELANELL in mind, as its basis for business activities. Bio Projekt was established on the consultant’s recommendation in 2002, as a biogas plant is such a big operation that it often involves many stakeholders and therefore deserves to be handled as a separate company. The handling of the biogas operation in a separate company would allow Tallegg to concentrate on their main business; the production of broilers and eggs. Bio Projekt have already secured letters of support form AS TALEGG as well as from the municipality in which the biogas plant should be situated. 8.2 Financing The main objective of Bio Project would be to mature the biogas project. The financing of the plant should be constituted by the following three items: • The payment for the CO2e quota could fall up-front or be used as collateral for a bank credit. • The Single Programme Document points out in general terms how means from EU structural

funds should be prioritised in the coming years. As a biogas plant of the described type can be considered as both 1) an investment in a renewable energy production; 2) an environmental investment; and 3) a rendering plant; it seems possible that 50% financial support for the investment in the biogas plant would be approved.

• The remaining financing must be based on a group of investors. Investors should all have a stake in the biogas plant, including those who deliver biomass to the plant and those who buy the products of the biogas plant. The investors would typically raise at least 20% of the investment themselves, while a credit would cover the rest.

As mentioned in Annex A, AS TALEGG is manly owned by the Finnish company HK Ruokatalo (owned by Finnish farmers). It is anticipated that the interest of the owners of AS TALLEGG in obtaining an efficient solution concerning the disposal of the manure from AS TALLEGG, is so great that they would also be interested in financing part of the investment. In this respect it should be remembered that the IPPC approval is of vital importance to the farm. Another obvious investor would be Eesti Energia, which, on behalf of the Estonian state, would be interested in investing in renewable energy. If the group of investors would want to share the investment risks with others, it is suggested that NEFCO be contacted (Nordic Environment Finance Corporation), which is an institutional investor in environmentally related projects. NEFCO would typically provide investment capital for projects with positive environmental impacts or energy savings. The advantage of applying NEFCO for a loan rather than a conventional commercial bank is that:




• Conventional commercial banks would typically be reluctant to enter into projects which for them would deal with unusual investment subjects, and therefore the loan conditions may be too unfavourable.

• NEFCO has expertise in the field of environmental investments; NEFCO was established by the Nordic countries to operate within this field, and the main purpose of NEFCO is to promote economically sound environmental investments.




9 AGREEMENTS The following agreements should be negotiated by Bio Projekt and closed before the decision to start the construction works is made: 9.1 Supply of biomass The Estonian Agricultural University has collected information about available biomass, as seen in Table 10, including biomass from sources external to AS TALLEGG. In the further maturing of the biogas plant project it is important as one of the first steps to secure written agreements with the companies that are foreseen to deliver this biomass. 9.2 Electricity/water and telephone connection Supply of electricity to the proposed site for the erection of the biogas plant is already in place, whereas the supply of water is yet to be planned. In Estonia everyone has a mobile phone, and therefore it would not be necessary to establish a telephone connection. 9.3 Delivery of electricity and fertiliser It is recommended to contact Eesti Energia at an early stage concerning the possibilities for delivery of electricity to the grid. A company dealing in, but not producing, mineral fertiliser should be contracted for trade of the separated fertiliser fractions. 9.4 Sale of the CO2e quota A preliminary agreement for sale of the CO2e quota to DEPA has already been drafted. It should be remembered that such a preliminary agreement is needed in order to get the JI validation paid by the purchaser and that the project in terms of CO2e reduction units is envisaged to be at least 50,000 tonnes CO2e, so the present size of 34,500 tonnes CO2e is an absolute minimum.




10 AUTHORITY APPROVALS When initiating a new construction project or a reconstruction project, at first it must be verified whether the project is in compliance with the existing Local Area Planning Requirements. In case the project is not in compliance with the planning requirements, an application for the technical condition for design should be submitted to the local authority. These proceedings can be based on the pre-design/pre-study of the project. The technical conditions will also state which co-ordinations are required. The construction process is mainly regulated by two legal acts: 1. Building Act (enforced on 1 January 2002) 2. Environmental Impact Evaluation and Environmental Auditing Act (enforced on 1 January

2001) The building permit application should be presented to the local authority. It is based on design documents and usually coordinated with the Environmental Office, Rescue Service, Labour Inspectorate, Health Office and Water and Electrical Utilities. The local authority is also responsible for the supervision of building activities within its jurisdiction. An Environmental Impact Assessment should be performed, when planned new construction or reconstruction is expected to cause essential environmental impacts, if natural resources are to be exploited or a Pollution Permit (IPPC) is required or needs to be changed. The environmental memorandum should be presented to the local environmental office and this office will decide whether or not an Environmental Impact Assessment is needed and to which extent the assessment should be performed. When the project is completed, it must be approved by all relevant supervising organisations and an operation permit should be applied for. The supervising authority will issue the permit. Basic data of the building will be kept in the Building Register. In case the new company is formed to operate the biogas unit, it must be registered in the Business Register.




11 PREPARATION OF PROJECT PROPOSAL Based on the economic, environmental and agricultural impacts calculated above, it is recommended that the planning work with the aim of developing a complete project proposal be continued. The detailed project proposal should include a detailed pre-analysis of the local circumstances and needs and a detailed description of all instruments and processes employed in the plant. The project proposal shall serve as the basis for a final contract and for the approval of the project by authorities. The project proposal shall also include a detailed payment plan for the complete project. A project proposal includes: • A geo-technical survey and chartered surveyor mapping • Collection of project data • Elaboration of a flow diagram and functions description • Elaboration of main process and instrumentation diagrams (PI diagrams) • Elaboration of a machinery and instrumentation list • Elaboration of a plan for pipelines • Dimensioning of the plant • A time schedule With the aim of staring operations in Autumn 2005, the following timetable has been set up. Year 2004 2005

Month SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV

Agreements on supply of other biomass and on sale of products

Geo-technical survey and chartered surveyor mapping

Collection of project data

Clarification on financing

Production of flow diagram and functions description




Year 2004 2005

Month SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV

Elaboration of main process and instrumentation diagrams (PI diagrams)

Elaboration of machinery and instrumentation list

Elaboration of plan for pipelines

Dimensioning of the plant

A time schedule for the establishment

Permits for establishment of the plant

Contract

Erection of the plant




ANNEX A GENERAL FARM DESCRIPTION This general presentation of AS TALLEGG is taken from the company’s annual report for 2003:




During and following the visits to AS TALLEGG the following specific information of relevance in connection with the preparation of this feasibility study was collected:

AS TALLEGG Address Saha tee 18

Loo EE-74201 Harjumaa Estonia Web: http://www.tallegg.ee

Date of visit 20 April 2004 Persons met Technical and Development Manager, Mr Raul Raud

Tel. +372 610 7019 Mobile: +372 51 88 049 Fax: +372 610 7069 E-mail: [email protected]

Ownership 98.3% owned by Finnish HK Ruokatalo

General farm information

Main production Poultry (both broilers and eggs) Number and type of animals Around 330,000 layers + chicks in stable

Around 8 million broilers produced per year Stable system There are:

• 8 stables for layers (7 of them used and one under repair)

• 10 stables for chicks – not all are in use (around 100 days’ production cycle)

• 57 broiler houses each with space for 23,000 broilers. 6.5 cycles per year. Total annual production more than 16,000 tonnes of poultry meat

Cleaning system Conveyor belts in layer houses Tractors in broiler houses

Bedding material None in layer houses Peat and sawdust in broiler houses

Manure production

Slurry, manure, dry poultry manure

Disposal of manure – around 20,000 tonnes of slurry and 15,000 deep litter. AS TALLEGG has agreements with 2 companies (legally and economically separate from TALLEGG) who take the manure away. A satisfactory solution for AS TALLEGG. The two companies spread the manure onto the fields and turn it into compost. The operation is not very profitable. There is a high content of P in the manure, and it is limited how much is allowed to be spread onto the fields per ha. The dry matter content is 10-20%. 1-year contract with automatic prolongation.

http://www.tallegg.ee/

mailto:[email protected]




AS TALLEGG Dead animals Rendering. Dead animals are collected in containers

and picked up by the rendering plant “Vania”. Other wastes (own)

Slaughterhouse waste Total amount of waste is 4,500 tonnes (feathers, intestines, flotation fat). Partly sold to fox farms.

Size of manure stores, m3 4 tanks each of 2,500 m3 situated 4 km from the main farm buildings.

The tanks have aggregates for mixing of the slurry to make it more homogenous and avoid sedimentation of the more dense parts.

The tanks are 10 years old and built as an iron reinforced brick construction.

Stores

Storage capacity, months Around 6 months of the slurry production Ha of owned fields onto which manure can be spread

0

Agreements concerning Ha of fields onto which manure may be spread

AS TALLEGG has agreements with 2 companies (legally and economically separate from TALLEGG) who take the manure away. A satisfactory solution for AS TALLEGG. The companies spread the manure onto the fields or turn it into compost before it is sold. The operation does not seem to be very profitable. There is a high content of P in the manure, and it is limited how much is allowed to be spread onto the fields per ha. 1-year contract with automatic prolongation.

Type of spreading equipment None Average distance to the fields, km

Approx. 20 km

Disposal of manure and wastes

Present costs for the handling of manure

?




AS TALLEGG Energy consumption

Consumption of electricity, MWh per year

Broilers: • Total electricity costs for 1 cycle are 10,888 EEK,

which with 57 stables and 6.5 cycles per stable corresponds to an annual consumption of 4,742 MWh, equal to 0.59 kWh per produced broiler

Energy costs (electricity, LFO and natural gas) make up around 15 % of total production costs for broiler breeding. Layers: • Total annual electricity costs: 1.3 million EEK

corresponding to an annual consumption of 1,529 MWh, which equals 0.014 kWh per produced egg or 4.6 kWh per layer per year.

• Energy efficiency situation: − Part of the equipment is modern and energy is

used when needed. The largest energy consumer – the ventilation system – is computer controlled and programmable.

− Gas-fired air heaters mix the air with exhaust gases, which adds to the humidity inside the building. Heat exchangers are not used.

− The recovery of heat from exhaust air (about 60% of the heat is removed by ventilation) is a potential source of heat savings.

− Compressors are old and inefficient − Available energy consumption data are only in

money terms. − It seems the company managers should

consider the introduction of more detailed energy metering, analyses of consumption and comparison of consumption in different sectors, which would permit the identification of energy overspending.




AS TALLEGG Electricity price, EEK/kWh • The consumer price is 1.05 EEK/kWh including

VAT (18%) • The price for industries is around 0.85 EEK/kWh

–the VAT is refunded. There is a basic fee and different night and day prices.

• The payment for delivery to the grid is 1.8 times the production cost in Narva (43 cents per kWh), but this is only secured for a maximum of 7 years or until 2015.

Type of heat fuel LFO and natural gas Consumption of heat fuel per year

• Total LFO costs for 1 cycle are 22,567 EEK, which with 57 stables and 6.5 cycles per stable corresponds to an annual consumption of 2,090 tonnes, equal to 0.26 litre per produced broiler

• Total natural gas costs for 1 cycle are 10,000 EEK, which with 57 stables and 6.5 cycles per stable corresponds to an annual consumption of 2,058,000 m3, equal to 0.25 m3 per produced broiler.

Price of heat fuel • 4,000 EEK per tonnes excluding VAT for natural gas

• 1,800 EEK per 1,000 m3 excluding VAT for natural gas

IPPC farm (Y/N) Y Main environmental problems See notes below

Energy problems

Description of ideas on how to comply with the coming rules concerning the Nitrate Directive and the IPPC Directive

Handling of manure




AS TALLEGG

Figure 1 AS TALLEGG is situated in the vicinity of Tallinn

With regard to the energy situation at AS TALLEGG the Estonian Agricultural University has provided the following description: 1. Broiler breeding department • The complex consists of separate farm buildings and was constructed 20 years ago. Only minor

reconstruction of the buildings has been carried out. The buildings are partly thermally insulated (roofs). There are no standard requirements applicable for thermal insulation of poultry farm buildings

• Broilers are on deep litter • Most equipment was changed in the 90’ties. • A typical broiler breeding farm building accommodates simultaneously 46-48 tonnes of poultry live

weight. The cycle is 41-42 days. • Electricity is supplied from a local utility and each building has separate commercial metering

points. There is no separate metering for the various uses. • Data are presented in Table 23.




Energy consuming equipment Ventilation • Requirements to temperature and humidity are strict and the reconstructed ventilation system

has automatic control of parameters • Ventilation requirement – 3.5 m3/h per 1 kg of poultry • Buildings are equipped only with exhaust vents, however, some buildings have both exhaust

and supply vents • Supply air is not preheated on entry, but natural gas-fired or light oil-fired air heaters circulate

the air inside the building. Air movement is organised from intakes in sidewalls and outlets in the house end or ventilator cowl

• The amount of ventilation air depends to a great extent on the age of chickens, the season and the outdoor temperature. The ventilation load is at its maximum during summer

• Each building is equipped with 23 exhaust fans, of which 20 have a capacity of 450 W and 3 of 341 W. No supply air fans

• Humidity is controlled by fresh air amount and temperature • The system is computer controlled and programmable • Ventilation and air heating account for the main part of the energy consumption in the building

(estimated 60-70% of total energy consumption). Lighting • There are 120 fluorescent 60 W lamps in each building. Filament lamps are also used.

Working regime is 2 hours on, 1 hour off. Feeding, drinking • Feeding is automatic. The electricity consumption is small. Hot water • Hot water is supplied from electric water heaters for hand washing etc. Locker rooms and

showers are common for several farm buildings • Total energy costs for 1 cycle are: Electricity: 10,888 EEK, LFO: 22,567 EEK, gas: 10,000 EEK • Energy costs make up around 15% of the total production costs of the broiler breeding




2. Egg production (layers) department • Buildings are similar to broiler breeding buildings. No heating. Energy consuming equipment Technological equipment • Feeding and drinking; conveyers of eggs; removal of manure Ventilation • Number of vents and their capacity are the same as for broiler breeding. Computer controlled. Lighting • Fluorescent lamps. Lighting is turned on from 7.00 a.m. to 4.00 p.m. Cooling • Compressor units are old, from the Soviet era Other services: sorting, packing of eggs, locker rooms • Total annual electricity costs: 1.3 mio. EEK • Total annual egg production: 109 mio. per year • Specific energy costs: 11.93 EEK/1,000 eggs or approx. 15 kWh/1,000 eggs Energy efficiency situation • Part of the equipment is modern and energy is used only when needed. The system which

consumes the main part of the energy consumption – the ventilation system – is computer controlled and programmable

• Gas-fired air heaters mix the air with exhaust gases, which adds to the humidity inside the building. Heat exchangers are not used

• Recovery of heat from exhaust air (about 60% of the heat is removed by ventilation) is a potential source of heat savings

• Compressors are old and inefficient • Available energy consumption data are only in money terms • It seems that the company managers should consider the introduction of more detailed energy

metering, analyses of consumption and comparison of consumption in different sectors, which would permit the identification of energy overspending




Purpose Equipment Location, purpose

Units; capacity per unit (kW)

Total capacity

(kW)

Operational hours per day

Electricity consumption per day (kWh)

Seasonality Amount (kWh)

Amount (kWh/unit): Per prod. ton

Feed transport

Feeding conveyor

In stable 9; 0.37 3.33 5 16.65 649 14.11

Lighting Filament lamps

In stable, 2 h light, 1 h dark

120; 0.06

7.2 16 115.2

23.11-31.12

(39 days) 4,493 97.67

On stable walls

20; 0.45

9 2.4 21.6 23.11-31.12

(39 days)

842 18.30 Venti-lation

Exhaust fans

On stable walls, reg. by frequency

3; 0.341 1.023 2.4 2.46 23.11-31.12

(39 days)

96 2.09

Total 6,080 132.17 Table 22. Electricity consumption by field of use in AS TALLEGG (prod. 46,000 kg from 23 Nov – 31Dec

2003)




ANNEX B DETAILS OF ARTICLE 12 CONCERNING APPROVAL OF BIOGAS PLANTS

The Article 12 (1774/2002/EEC) approval scheme The details of the Article 12 (1774/2002/EEC) approval scheme are quoted below. 1. Biogas plants and composting plants shall be subject to approval by the competent authority. 2. To be approved, biogas plants and composting plants must:

• meet the requirements of Annex VI, Chapter II, section A; • handle and transform the animal by-products in accordance with Annex VI, Chapter II

Parts B and C; • be checked by the competent authority in accordance with Article 26; • establish and implement methods of monitoring and checking the critical control points;

and • ensure that digestion residues and compost, as appropriate, comply with the

microbiological standards laid down in Annex VI, Chapter II, Part D. 3. Approval shall be suspended immediately if the conditions under which it was granted are no longer fulfilled. Annex VI chapter II: Specific requirements for approval for biogas and composting plants. A Premises 1. Biogas plants must be equipped with: a) a pasteurisation)/sanitation unit, which cannot be by-passed

• installations for monitoring temperature against time • recording devices to record continuously the results of these measurements • an adequate safety system to prevent insufficient heating

b) adequate facilities for cleaning and disinfecting of vehicles and containers upon leaving the biogas plant. 3. Each biogas plant and composting plant must have its own laboratory or make use of an

external laboratory. The laboratory must be equipped to carry out the necessary analyses and be approved by the competent authority.

B. Hygiene requirements. 4. Only the following animal by-products may be transformed in a biogas or composting plant:

a) Category 2 when using processing method 1* in a Category 2 processing plant b) Manure and digestive tract content c) Category 3 material

5. Animal by-products referred to in paragraph 4 must be transformed as soon as possible after




arrival. They must be stored properly until treated. 6. Containers, receptacles and vehicles used for transporting untreated material must be cleaned

in a designated area. This area must be situated or designed to prevent risk of contamination of treated products.

7. Preventive measures against birds, rodents, insects or other vermin must be taken systematically. A documented pest control program shall be used for that purpose.

8. Cleaning procedures shall be documented and established for all parts of the premises. Suitable equipment and cleaning agents must be provided for cleaning.

9. Hygiene control should include regular inspection of the environment and equipment. Inspection schedules and results shall be documented.

10. Installations and equipment must be kept in a good state of repair and measuring equipment must be calibrated at regular intervals.

11. Digestion residues must be handled and stored at the plant in such a way as to preclude recontamination.

C. Processing standards 12. Category 3 material used as raw material in a biogas plant equipped with a

pasteurisation/sanitation unit must be submitted to the following requirements: a) maximum particle size before entering the pasteurisation unit: 12 mm b) minimum temperature in all material in the pasteurisation unit: 70oC c) minimum time in the pasteurisation unit without interruption: 60 min.

D. Digestion residues and compost 15. Samples of the digestion residues or compost taken during or on withdrawal from storage at

the biogas or composting plant must comply with the following standards: Salmonella: Absence in 25 g: n=5, C=0, m=0, M=0 Enterobacteriaceae: n=5, C=2, m=10, M=3 x 102 in 1 g. Where n=number of samples to be tested, m= threshold value for the number of bacteria; the result is considered satisfactory if the number of bacteria in all samples does not exceed m; M = maximum value for the nmber of bacteria; the result is considered unsatisfactory if the number of bacteria in one or more samples is M or more; and; c= number of samples the bacterial count of which may be between m and M, the sample still being considered acceptable if the bacterial count of the other sample units is m or less.

Annex B Comments As is evident from the above the regulation demands a simple hygienisation of the category 2 and 3 material which is allowed to be digested in biogas plants, and at the same time that category 2 material shall be pressure sterilised by “method 1”, i.e. at 133o C, 3 bar in 20 minutes. This sanitation is motivated due to a possible occurrence of microbial pathogens in the MBM, and accordingly only microbial standards are required for the degassed products. It may be noted that also the animal slurries if co-digested with by-products are to pass a sanitation unit before degassing.




ANNEX C PLAN OF THE GFE TYPE BIOGAS PLANT FOR AS TALLEGG

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