Project "Development of cross-border biofuel infrastructure"

Duration of the project : 17.10.2012 - 31.12.2014

Budget: 404 000 EUR, grant from CBC ENPI Karelia - 363 600 EUR.

• Turveruukki Oy, Finland. Oulu.
• Oulun Energia, Finland, Oulu.
• Karelian Research Centre of the Russian Academy of Science (KarRC of RAS), Russia, Republic of Karelia.

Associates:

• State Committee of the Republic of Karelia on Reforming Municipal Utilities, Russia, Republic of Karelia.
• Administration of the Kostomuksha Urban District Russia, Republic of Karelia.
• Administration of Kalevala National District, Russia, Republic of Karelia.

Brief description of the Action:
The project is aiming at assisting the Karelian republican and municipal authorities in improving the local biofuel production infrastructure with priority given to the raw material, delivery logistics, production technologies, storage and final utilization of local biofuels in the border Karelian municipalities and with the application of relevant Finnish experiences, technologies and procurement solutions. A number of expert studies and assessments, in combination with workshops and study tours will be conducted under the project framework for developing an optimum model for the improvement of biofuel supply infrastructure in selected Karelian municipalities.
The municipal authorities are also keen on converting a couple of existing boiler plants from the imported fossil fuels to the locally available biofuels due to extremely high negative impacts of contaminant emissions in the ambient air for both Karelian border communities and neighboring Finnish municipalities and also due to exceptionally high delivery logistics of coal and diesel oil to distant Karelian localities.
The study on potential for developing the local biofuel production infrastructure shall be undertaken by the project expert forces for securing the sustainable and reliable deliveries of biofuels to converted boilers and also with due consideration given to the export potential of biofuels to the neighboring Finnish municipalities.
The study shall contain the feasibility and business planning calculations stipulating the economic viability of developing the local biofuel production infrastructure in Karelian municipalities. The project will be also provding the support to Finnish energy companies in what concerns the potential of exporting the biofuels from Karelia to neighboring Finnish commuinites.

Target groups:
Description of the target groups and final beneficiaries:
•    Municipal administrations of Karelian border communities including Kostomuksha, Kalevala and Mujezerka
•    Municipal and private district heating operators in Karelian border areas - Local logging/processing industries operating in Kostomuksha, Kalevala and Mujezerka municipalities
•    Finnish energy companies running the business in neighboring Finnish communities

Final beneficiaries:
•    Inhabitants of Karelian and Finnish border municipalities
•    Local Finnish and Karelian energy and fuel production eneterprises

Overall objectives: 
1.    Increasing the share of local renewable resources in respective municipal fuel and energy balances, abandon the consumption of imported and costly fossil fuels and by thus improving the cross-border environmental situation.
2.    Development of the local biofuel production infrastructure in Kostomuksha, Kalevala and Muezerka municipalities by adopting relevant Finnish experiences, technologies and knowledge and with the view of potential convertion of local boiler plants to domestically available biofuel resources.
Specific objective:
Cross-border strategy for cost-effective production, transportation, storage and final utilization of available biofuel resources is developed for the bordering regions of Karelia and Finland.

Main activities:
1.    Overview of the local biofuel production infrastructure in the selected municipalities.
2.    Analysis of the raw material potential in the selected municipalities.
3.    Comparative analysis of the existing Russian and Finnish biofuel production technologies.
4.    Analysis of consumer markets, biofuel delivery logistics and sales (in Karelia and Finland), and development of respective recommendations.
5.    Elaboration of business plans for biofuel production and sales.
6.    Development of training and consulting materials for training of selected target groups.
7.    Transfer of the respective Finnish know-how and knowledge to Karelian stakeholders in the form of training sessions and study tours.
8.    Analysis of biofuels export opportunities and elaboration of recommendations for export-import operations.
9.    Monitoring of biofuel deliveries from selected Karelian municipalities to Finnish energy objects.
10.    Networking and information exchange (forums of stakeholders, virtual communication platform, promotional publications, e-databases).

Main outputs:
1.   Recommendations for the development of the local biofuel market in selected municipalities are made on the basis of Finnish experience and expertise.
2.   Business plans for biofuel production on the territory of Karelian municipalities are produced
3.   Improved competence and professional qualification of Karelian decision-makers, enterprises' managers and engineers.
4.   Set of required export/import documentation and recommendations for arranging regular export deliveries of biofuels from Karelia to Finland is provided
5.   Biofuel delivery from Russia to Finland is tested in terms of logistic efficiency and cost-effectiveness
6.   Improved communication and direct contacts between the Karelian and Finnish energy sector actors.