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Development of the new pellet market in slovakia

Ladislav Zidek, Dagmar Bohunicka

SUMMARY:
The paper presents results and experiences with the development of the new pellet market
in Slovakia. The main goals of BIOMASA Association through its ongoing project are the
creation of a sustainable wood pellets market for biomass energy aiming at heat generation,
GHG emissions reduction and promotion of the renewable energies in Slovakia. In this
project a new plant for pellet production has been built and 44 boilers in schools and other
public buildings were converted from fossil fuel to wood pellets. Such complex logistic
systems have never been created and managed before in Central and Eastern Europe.
Project is multinationally financed through several grants.
Keywords: wood pellets, logistics, biomass heating, green house gases, renewable energies,
sustainability, regional development in Central and Eastern Europe.


1. BOTH  PELLET PRODUCTION AND USE 

Slovakia is considered to have ideal natural conditions for developing biomass energy, it
is definitely among countries that are rich in biomass. Almost half of Slovakia is aforested
with a huge amount of biomass. But environmental awareness in Slovakia is still low and
many people consider biomass as a fuel used by nature enthusiasts and environmentalists.
A successful project implementation, in which people can see in practice that pellets are a
competitive and a cost-effective heating fuel, might be a "first step" overcoming the people's
mistrustfulness.
BIOMASA Association designed and is implementing the project that presents complex
solution for the implementation of pellet heating and establishment of the market with wood
pellets in Slovakia. It solves production and consumption of pellets as one integrated unit.
Project includes all aspects of building a new bio-energy market, in this case a pellet market.

a) Adjustment activities for reducing institutional, financial and information / awareness
barriers of using "the quite new energy source" biomass in Slovakia

b) Constructing and starting the operation of a pellet plant, so called "Central
Processing Unit (CPU)" with an annual production of 12,000 tons of wood pellets.

This includes: collecting of waste residuals; technical processing of sawdust into pellets; 
packing, storing and sales of pellets; distribution to boiler rooms.

It only works, if there is a market...
c) Building a "first market" by installing and operating 44 biomass boilers (by replacing
coal / coke fired boilers with wood-pellet boilers) as living and touchable example.
d) Information campaign to increase the use of biomass as a widespread and well
developed energy source.
e) Building a sustainable biomass fuel market (which can be replicated in other regions
and countries).
f) Result at the end: Reducing of GHG emissions, development of new technology in
Central Europe.
Such complex logistic systems have never been created and managed before in Central and
Eastern Europe.

   The new pellet plant in Kysucky Lieskovec in Zilina region is in operation since October
2004. Its production capacity reaches 12 000 tones per year using approx. 20 000 tones of
wood residues. The initial investment costs for the plant construction were about 3,5 millions
Euro. The technologies used are from Slovak producers besides the pellet mill, which was
delivered by CPM Europe in Netherlands. The hourly production is 2 - 3 tons.
Fig.1: Pellets production plant in Kysucky Lieskovec

Pellets production plant also serves as a (so called) Central Processing Unit and it ensures the following activities:

• Collection of wood waste residuals in the form of wet and dry sawdust
• Technological processing of sawdust to wood pellets respecting quality standards
• Packing, storing and sales of pellets
• Distribution of pellets to boiler rooms
• Central management of boiler rooms

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Development of the new pellet market in slovakia