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direct link on the UNFCCC validation process

Around 30% of wheat and rice straw are being used as fodder, while the rest of 70%, together with total annual amounts of rice husk, is being burned in uncontrolled manner or left to decay in open, and therefore can be used for energy production.

Taking into account available annual amounts of agriculture residues in this area, it has been estimated that it would be possible to install either 4 to 4,5 MW for thermal energy generation or a CHP unit with installed capacity of 1,5 MWel and 2,5 MWth.

In the Municipality of Kocani, there is an industrial zone called the Old Industrial Zone of Kocani, where the privately owned Paper Factory “Hartija DOOEL” is located. The annual consumption of the fuel oil in the factory is 4.240 t and the annual electricity demand is 15.048 MWh. Current installed capacity for thermal energy generation is 6 MW and there are some infrastructure elements for electricity generation and its exportation to grid already in place. The annual steam consumption in the production processes in the factory is 5,7 t/h, while the total annual steam consumption in the factory is 7.016 t/h.
Installing of the thermal boiler on agriculture residues, with installed capacity of 4,5 MW, would provide generation of 28,6 GWh annually and would substitute the use of around 3.000 t of fuel oil in the mentioned paper factory.
Calculations of GHG reductions related to this fuel switching have been performed and listed in the section below.
In the area of Kocani, there are no biomass-to-energy systems in place yet. However, infrastructure elements for packing and collection of straw bales exist.

Applied methodology

AMS-III.B. “Switching fossil fuels”

GHG offset

It is estimated that the project has a capacity to avoid emission of around 11.900 tCO2eq
annually, i.e. 119.000 tCO2eq for the period 2008-2018.

Sustainability

The following non-GHG related social and environmental benefits have been identified as a result of the project:

  • Support to sustainable development of the region;
  • Improvement of waste management in the area;
  • Promotion of renewable sources of energy and introduction of clean and efficient technologies;
  • Diversification of the sources for energy generation.

Current status

Winner of tender process: EURECNA

The project is in phase of validation. There are few obstacles that are following this project:

  • Feed in tariff for production of energy from biomass has been introduced but the tariff seems to be too low;
  • Validation company has received suspension from UNFCCC Executive Board;
  • New validaton process must be done.

Macedonian government has proposed the upper limits for the new installed energy production capacities from renewals, where the limitation for biomass energy units is 3 MW.

Estimated investment cost

In case of installation of biomass boilers for thermal energy production, the investment would be around 1,5 mil EUR, taking into account technology prices in Western Europe countries. If the installation of CHP unit with a steam turbine happens to be a selected option, the investment could be around 3,75 mil EUR.

Local Partners

Paper Factory “Hartija DOOEL”, Kocani.