National Biomass Association SERBIO: Biomass Logistic and trade center in Majdanpek

Vojislav Milijic, President of NBA SERBIO

Content

1. SERBIO 2. Biomass in Serbia 3. Biomass logistic and trade center 4. Project implementation & activities 5. Follow up and Possibilities to apply similar model

1.SERBIO Established in 2012 with support of Royal Norwegian Embassy Mission: contribution to sustainable development of bioenergy sector in Serbia. Vision: Energy efficient Serbia with sustainable share of biomass in energy balance. Goals: • Market and favorable business environment for sustainable bioenergy Sector • Improvement of information exchange on biomass utilization possibilities • Public-private partnership development in biomass utilization • Improvement of knowledge, research and development of utilization of Members: 1. NGOs, CA, PFOAs and other interested in RES utilization development 2. Companies active in biomass production and related services 3. Individual experts in biomass utilization Financing: Membership fees, projects, services Activities: Information dissemination, consulting, marketing services, project implementation, lobbying, event organization

2. Biomass utilization in Serbia Forest area (M ha) 2.25 Area of forests in total area (%) 29 Total timber volume (M m3) 362.49 Average timber volume (m3/ha) 161 Annual increment (M m3) 9.08 Average increment (m3/ha) 4 High forests area/volume (%) 27/43 Coppice forests area/volume (%) 65/50 Plantations area/volume (%) 8/7 Conifer volume (%) 19 Broadleaves volume (%) 81 State area/volume (%) 53/61 Private area/volume (%) 47/39 Annual harvest (M m3) 4.6 Tech/firewood/residues (%) 43/45/12

Agricultural land area (ha) 5.10 Agr. Land area in total area (%) 58 Arable land (%) 65 State/Private (%) 17/83 Corn area/yield (M ha/M tons) 1.26/6.48 Wheat area/yield (M ha/M tons) 0.49/2.01 Sunflower area/yield (M ha/M tons) 0.17/0.43 Soybean area/yield (M ha/M tons) 0.17/0.44 Sugar bit area/yield (bit M ha/M tons) 0.06/2.82

Wood biomass 1.53Mtoe Agriculture biomass 1.7Mtoe Total – 3.3Mtoe Biomass 64% of all renewables Goal 2020 – 27% renewables 2009 – 21% - 2.107Mtoe 2020 – 27% - 2.789Mtoe Renewables increase 0.629Mtoe In electricity: New 100MW biomass CHP New 30MW biogas CHP Heating and cooling: Additional 0.074Mtoe biomass Additional 0.01Mtoe of biogas Action plan for renewable energy 2012 Strategy for energy development of Serbia until 2025 (draft) Feed in tariffs: Biomass CHP lower than 1MW = 0.1326EUR/kWh Biomass CHP 1-10MW = 0.1382EUR/kWh Biomass CHP over 10MW = 0.0822EUR/kWh Biogas CHP up to 0.2MW = 0.1566 EUR/kWh Biogas CHP 0.2-1MW = 0.1649EUR/kWh Biogas CHP over 1 MW = 0.1231EUR/kWh

Several ongoing CHP and DH projects

Various issues in biomass supply and project development

Biomass is mostly used in: Wood/agro pellet/briquette Chipboard Firewood Energy production in industry

3. Biomass Logistic and Trade Center Idea: To establish the center for distribution and marketing of solid wood fuels Concept: Regional service center for firewood, wood chips and other solid wood fuels managed by local forest owners and entrepreneurs

Goals/benefits: • Transparent mechanism in wood trade • Strengthening of local economy: employment in rural areas for social groups (elders, low level of

education, etc) • Stabilization of biomass fuel market • Extension services for forest owners and entrepreneurs

Until now no BLTCs in Serbia!

3. Biomass Logistic and Trade Center Location: Majdanpek municipality Why Majdanpek: • Forest cover more than 70% - 63,000ha • Potential yield over 130,000m3 – underutilized • 1/3 private forests • Municipality has unstable heat delivery – resulted in population using firewood in buildings in urban areas From 2009 Majdanpek started initiative for DH and CHP development – in progress

3. Biomass Logistic and Trade Center BLTC Project Capacity building for establishment of Regional Center for Biomass Distribution developed in 2013 Partners: • Resurs Center Majdanpek – main partner • Majdanpek Municipality – in kind contr. and location for BLTC • Majdanpek forest owners’ association – wood supply • Association of ship captains of Serbia - transport • SERBIO – biomass supply and processing training

Specific goals: 1. Develop and establish logistic and trade center for woo fuels and products

marketing, which can supply domestic and EU market with products via Danube river

2. Improve capacities and competitiveness in marketing chain for production, distribution and utilization of biomass in Lower Danube region

Applied for project financing to Project fund: Socio economic development of Danube region – Austrian Development Agency Received support and financing and project started in summer 2013 Duration: 18months

4. Project implementation & activities 1. Infrastructure works in building BLTC

2. Machinery procurement: – Firewood processor √ – Wood humidity measurement equipment √ – Wood chipper (low to medium capacity) √ – Telehandler √

3. Extension and training – Training for forest owners and future employees of BLTC on biomass

production, processing, trade, quality, etc…√ – Training for entrepreneurs in ship transport for manipulation and transport

of wood biomass products – Online biomass product sale platform – http://www.serbio.rs/mapa

4. Project implementation & activities

5. Follow up and Possibilities for application • BLTC – joint company of Resurs Centar and JKP Toplana Majdanpek • 4 people to be employed in BLTC • Strong demand for firewood • Wood chips demand growing • DH and CHP initiative for Majdanpek continues • New CHP in Donji Milanovac contract signed (Atlas Group 1.2MW) • Development of biomass DH projects (bioenergy villages) and rural public building

heating (schools, etc) • BLTC concept applicable in Serbia • Especially with small-medium scale biomass consumers – DH systems, schools,

industry facilities, hotels, restaurants, hospitals, retirement homes, etc… • Interest for such projects is constantly growing - To small for independent wood

chips production and storage • BLTC developed locally can provide efficient solution! • BLTC employ and engage local population using wood from private forests locally

• BioRes project application for Horizon 2020 –GIZ, AEBIOM, LK-STM, CARMEN, METLA, KSSENA, REGEA, BGBIOM, SERBIO – goal: development of BLTCs in Balkan countries

• SERBIO in German-Serbian Bioenergy Partnership: – Link to local companies and local bioenergy projects – Project implementation – Information, awareness raising and public relations – Policy formulation and lobbying – Biomass utilization trainings implementation and consulting services – Organization of biomass supply (contracting biomass, logistic solutions,

etc…)

5. Follow up and Possibilities for cooperation

Thank you for your attention!

Please visit us at: www.serbio.rs Contact info:

vojislav.milijic@serbio.rs +381 62 553 089