Renewables

Hrvatske Šume launches tendering for wood chip delivery for cogeneration plants

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Published

February 14, 2019

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Published:

February 14, 2019

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Croatia’s public forest management utility Hrvatske Šume has announced a public call for the sale of 265,000 tonnes of wood chips and firewood intended only for combined heat and power (CHP) in high-efficiency cogeneration plants.

The public call worth EUR 200 million was launched on February 12, as announced ten days ago, when the management of Hrvatske Šume terminated 20 contracts for wood chips and firewood because the companies in question had not met their contractual obligations.

The deadline for submitting bids is February 28.

Only cogeneration plants with an efficiency of at least 60% are eligible to apply, Hrvatske Šume said in a press release.

The selection will also depend on the number of employed workers per unit of installed capacity of plants for which the fuel will be used, as well as on the development index.

Priority will be given to companies that have obtained an operational license and have status of a privileged electricity producer with the Croatian Energy Regulatory Agency, as well as a certificate from power utility Hrvatska Elektroprivreda (HEP) for permanent connection of the plant to the power grid and evidence that at least 75% of the investment is spent on plant construction.

The new contracts will be signed with companies that guarantee the start of cogeneration plants by the end of 2019.

The selected companies will also have to demonstrate how they will use waste heat.

The selection criterion is the required amount of raw material in relation to the installed capacity of the plant. The applicants which require a lower percentage of raw materials (up to 80% capacity) will have priority, and this demand reflects Hrvatske Šume’s intention to activate the potential of private biomass producers.

Prices determined on the basis of Eurostat data

The prices of raw materials were determined on the basis of data published by Eurostat and will be adjusted according to the price index for wood chips. Prices will be variable during the contract term.

Under the new contracts, Hrvatske Šume will be obliged to check plant efficiency and the distribution of energy to other producers, kindergartens, schools or residential buildings, said Mario Klobučar, coordinator for forest biomass at Hrvatske Šume.

He noted that wood biomass is a strategic energy source among renewable energy sources, and therefore with this public call, Hrvatske Šume intends to secure the efficient use of raw materials and energy in all phases of the energy chain.

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