Financing: direct award from USAID
Role of All-Ukrainian Charitable Organization "Municipal Development Institute": sole implementer
Project implementation period: June 2013 – November 2015
The goal of the Project was to develop sustainable solutions for increased utilization of locally available alternative energy sources (biomass) in Myrhorod rayon of Poltava region in compliance with market and environmental requirements.
Project objectives were: prepare legal and regulatory basis for implementation of bio-energy renewable projects in Myrhorod rayon of Poltava region; develop infrastructure for collection, treatment and storage of biomass in the region; prepare engineering solution and implement a pilot project on bio-fuel energy production in Myrhorod; establish market conditions for bio-fuel energy production by private sector participants under PPP arrangements in the region; prepare Business Plan and Regional Program for investments in bio-fuel energy production in the region; carry out an Education and Information Campaign on introduction of local bio-fuel solutions and multiplication of best practices.
Achievements
1. With support from Myrhorod City Council and Poltava Oblast State Administration, MDI implemented the pilot project and reconstructed a gas-operated boiler house in Myrhorod (Spartakivskyi Provulok).
Under the pilot project, 5 obsolete gas-fired boilers were dismantled, 3 new 1 MW KOLVI-1000 gas boilers with modern burners and a multi-fuel boiler 1 KOMKONT СН-90 (straw, wood chips, pellets) were installed. The operating storage facility was constructed on the territory of the boiler house. The reconstructed boiler house provides heating and hot water to residents of the micro-rayon in which the boiler house is located: 10 apartment blocks – 1275 residents, a school – 253 school children and 45 employees and a kindergarten – 100 children and 24 employees.
2. Assistance was provided to Myrhorod Heating Company (operating and maintaining the pilot boiler house) to obtain a state license on heat energy production from unconventional and renewable energy sources (License #2609 dated of October 2015).
3. With support from MDI, in 2015, local agriproducers collected 1764 tons of straw from 410 hectares (5 188 straw bales are enough for 15 months of operation of the bio-boiler).
Total of 9 items of machinery and equipment was used for straw collection, transportation and loading-unloading: 5 trucks (including MAZ truck with a trailer procured with financing from the Project), 2 telescopic loaders (incl. Massey Ferguson MF9407 loader procured with financing from the Project), a tractor, a front-end loader, and a tractor with a bailer.
4. Five cities of Poltava Oblast received assistance to develop feasibility studies of bio-energy projects, incl. assistance to attract a private investor under PPP.
The solutions proposed by MDI provided for substitution of 6 176 000 m3 of natural gas, reduction of harmful CO2 emissions by 12.5 tons annually, and attraction of UAH 75.6 mln of investments in bioenergy projects.
For Poltava, MDI developed technical solutions and necessary estimates for the project on reconstruction of the gas-operated boiler house on 35, Kahamlyk Street.
For Myrhorod, MDI developed a Business Plan for establishment of a network of bio-fuel burning plants in Myrhorod Rayon (cities Poltava, Myrhorod, Karlivka, Lubny, Velyka Bahachka) and a feasibility study for reconstruction of two boiler houses (80, Shishatska Street and 181, Gogol Street).
For Lubny and Velyka Bahachka, MDI developed pre-feasibility studies for reconstruction of gas-operated boiler houses and installation of bio-boilers (9, Industrialna Street and 45, Osypenka Street in Lubny; 6a, Lenin Street and 19a, Lenin Street in Velyka Bahachka).
For Karlivka, MDI developed the feasibility study of the bio-energy project and all necessary documents for attraction of a private investor under PPP arrangement (concession).
5. Resource and Logistics Center was established and is hosted by Myrhorod City Council. The Centre worka with biofuel suppliers, disseminates best practices, promotes CE PPPs, facilitates bioenergy solutions and incentives in Poltava region.
6. For the first time in Ukraine, the infrastructure for straw collection, baling and transportation from the field to storage facilities was established.
On the basis of the municipal enterprise "Spetskomuntrans", a logistic enterprise was set up for collecting, transporting and storing straw. The system for equipment and machinery subcontracting for quick and efficient straw harvesting and transportation from the field to storage facilities in Myrhorod was tested.
A central storage facility was constructed on the territory of "Spetskomuntrans". The existing storage building was reconstructed and 2 annexes were attached to the existing building for storing of up to 2000 tons of straw and ensuring uninterrupted straw supply for the bio-boiler.
6. In 2015, as a result of the comprehensive public outreach campaign on substitution of natural gas with alternative fuels the number of supporters of alternative fuels grew up: 56% of Myrhorod population (against 22% of supporters in 2014) supported the substitution of natural gas with local biomass and understood the importance of this solution for Ukraine's energy independence.