Development of bioenergetics in Lithuania

1
Development of bioenergetics in Lithuania

• Remigijus Bagdonas
• Chief specialist of Infrastructure, Land
  Reclamation and Cooperation Department of the
  Ministry of Agriculture
• of Lithuania
• Biomass and bioenergy 2008 Tallinn,
• 28-29 February 2008

2
General provisions

• Lithuanian energetic sector is highly dependent
  on imported raw materials (imported about 90
  ).
• The law on Biofuel, biofuels for transport and
  bio-oils was adopted in 2004.
• Government approved the programme for the
  promotion of the production and use of biofuel in
  2004-2010.
• Ministry of Agriculture is responsible for the
  development of the production of flammable liquid
  products.
• The production of biofuels for transport started
  in Lithuania in 2004.

3
The share of renewable energy sources (RES) in
the total production of energy in Lithuania

• 2004 8,0 (EU average 6,0 )
• 2005 8,8 (EU average 7,5 )
• 2006 9,2 (EU average-9,0 )
• 2010 12
• Biomass makes up to about 95 of total RES used
  for the production of energy (mainly wood).

4
The share of electricity produced from renewable
energy sources
5
The production of biofuel for transport in
Lithuania (thousand tons)
6
Production capacities of biodiesel producers
(thousand tons)
Entry No. Company 2007 2008 2009 2010
1 Rapsoila 30 30 30 30
2 Arvi cukrus 12 12 12 12
3 Obeliai 8 20 20 20
4 Mestilla 100 100 100 100
5 Baltijos biodyzelino centras 30 30 30
In total 150 192 192 192
7
Production capacities of bioethanol producers
(thousand tons)
Entry No. Company 2007 2008 2009 2010
1. Biofuture 20 40 40 40
2. Arvi cukrus 16 16
3. Pasvalio agrochemija 18 18
4. Bioetan 40 85
In total 20 40 114 159
8
The demand of rapeseed for biodiesel production
2007 2008 2009 2010
Yield (thousand tons) 75 450-500 500 500
Area (thousand hectare) 35 220-250 250 250

9
The demand of crop (triticale, wheat, rye) for
bioethanol production
2007 2008 2009 2010
Yield (thousand tons) 52 100 300 450
Area (thousand hectare) 17 35 100 150
10
The use of biofuel for transport

• Mandatory admixture of biofuel to fossil fuel
  was introduced in Lithuania.
• Biodysel and bioetanol amounts by 5 in the
  blend with diesel and petrol.
• Blending is carried out in the company Mažeikiu
  Nafta.
• Admixture capacity is 40 thousand tons of
  biodysel and 30 thousand tons of bioethanol per
  year. It is foreseen to increase capacity of
  admixture in the future.

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The promotion of biofuel for transport production

• State aid to biofuel for transport producers
• Biodiesel producers receive 160 LTL (46 EUR)
  for one ton of rapeseed.
• Bioethanol producers receive 114 LTL (33 EUR)
  for one ton of grain crop.
• Aid scheme (45 EUR) to energy crops producers was
  introduced in Lithuania from 2007.

12
The demand for state aid to iofuel for transport
producers from 2004 to 2010
Received state aid thousand litas Received state aid thousand litas Received state aid thousand litas Received state aid thousand litas Expected state aid thousand litas Expected state aid thousand litas Expected state aid thousand litas
2004 2005 2006 2007 2008 2009 2010
3790 (1100 EUR) 7990 (2310 EUR) 13665 (3960 EUR) 23636 (6850 EUR) 26600 (7700 EUR) 33200 (9600 EUR) 38200 (11060 EUR)
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Tax exemptions

• For biofuel (including pure vegetable oil) 0
  excise rate is applied
• The law provides for exemption from the tax on
  pollution for natural and legal persons that use
  biofuels for transport and have submitted
  documents confirming the consumption of biofuels
  for transport.
• The electricity, produced from RES shall be
  purchased at the fixed price 0.06 EUR/kWh.
  Also, producers of electricity from RES receive
  40 discount for connection to electricity
  supply system.

14
Support available from EU programmes 2007-2013  

• Obtain or modernize oil pressing equipments,
  storehouses and hothouses for raw materials.
• Install in the rural areas small wind generators
  and biogas power-stations by the 250 KW.
• To cover partly short rotation coppices plant
  expenses.

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Problems

• Introduction of mandatory indicators in the EU
  regulation concerning percentages of biofuel for
  transport in the blend with fossil fuel.
• To take steps for encouraging production of new
  vehicles with traditional engines capable of
  using a higher percentages (20,30 or more) of
  biofuel in the blend or even pure biofuels.
• To take necessary measures to adopt EU standards
  which would allow to use of higher than 5 ,
  10, of percentage of biofuel in the blend.

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Implementation of the Memorandum

• Development of the cooperation in the field of
  renewable energy sources (RES).
• Introduction of the www.bioenergybatic.eu web
  page.
• Bioenergetics competence centre was founded under
  the Lithuanian University of Agriculture.
• Advisable to coordinate positions we present to
  EU in the field of biomass and biofuel for
  transport.
• To concentrate efforts of scientific research of
  the whole Baltic region to make common projects.

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Thank you for attention!

• remigijusb_at_zum.lt