Austria(n bioenergy)
2010.04.29 14:48
Here are some old files and pics that I managed to dig up again. This time of a trip to Austria, back in 2006 when I was still a journalist, courtesy of the Austrian Embassy, to observe the country’s bioenergy industry.
The following are the feature bioenergy articles that I wrote. I’m not sure if they’re still relevant or up-to-date, but maybe someone can still use them for reference.
Anyway, you can skip the serious stuff and go directly to my travel notes if you want, here :p
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In the late 1980s, the town of Güssing was literally a god-forsaken place at the end of the map. Bordering the Cold War’s then-”Iron-Curtain” with Hungary, the woodlands area in the southern part of Austria’s most-eastern Burgenland state was a cul-de-sac, making it difficult for the local economy to develop. Many residents chose moving out to the capital Vienna, or to other nearby cities, seeking for better livelihoods.
Fortunately, all this changed when –apart from the Cold War ending– the local community then came up with an idea to build a thermal plant for processing waste wood from the local timber industry into heat and electricity for the 27,000-populated district. The idea struck preference with the Austrian federal government, which –since lessons learned from the 1970s oil price shocks– has always been encouraging the use of alternative energy resources.
So in 1991, the plant was built, with the federal government providing 40 percent of the 11 million euros (US$13.2 million) in funding needed. Together with the European Union (EU), it also set up the European Center for Renewable Energy (Europëisches Zentrum für Erneurbare Energie) to manage the project and develop other sustainable energy resources. In 2001, another plant was built –this time a biogas one– of which 60 percent of its 20.3-million-euro construction cost again being subsidized.
The two plants can put out a total 4.5 megawatts (MW) for district heating, and 2 MW of electricity to Austria’s national grid at a competitive price of 16 euro cents per kilowatt-hour (kWh). Pilot projects in state-of-the-art photovoltaic and fuel-cell power generation technology, as well as biomass-to-liquid (BTL) fuel, have also been introduced recently.
“The community’s cooperation through the bioenergy project has brought tremendous added-value to the region. Apart from now being self-sufficient in energy, the local economy has also developed an agroindustry and an eco-tourism sector,” project coordinator Alexandra Kopitar said. By figures, Güssing has seen 50 new companies, 1,000 jobs, and 13 million euros in annual turnover from the project.
Just some 50 kilometers southwest, at Styria state’s Austrian-Slovenian border town of Mureck, a similar bioenergy success story can be found.
Pinched by rising fuel prices, local farmers there resorted to their rapeseed crop –whose extracted oil is mainly used just for animal feed and vegetable oil– in producing biodiesel to fuel their tractors and as heating oil. An 8.4-million-euro biodiesel plant was built in 1989, half of its funding receiving federal government support.
The Steierisch Energie und Eiweißerzegung Genossenschaft (SEEG) plant can now produce up to seven million liters of biodiesel per year, after an upgrade in 1993 enabled it to process used cooking oil collected from the district’s households as well. This is more than enough to supply the needs of the local public transportation system of buses. Its sister 6MW Nahwärme biogas plant and 1MW Ökostrom power plant –both built in 1998 and 2003, respectively– further expanded the SEEG into a bioenergy industrial complex of its own, providing most of the district’s heating and electricity needs.
Putting it again in figures, Mureck saves nearly 1 million euros in fuel costs each year, and refrains itself from adding another 13 million kilograms of carbondioxide gas to the world’s global warming problem, thanks to its bioenergy plants.
SEEG Bioenergie senior manager Karl Totter (left photo) fills up his car’s tank with biodiesel produced from locally-grown rapeseed plant (upper-right photo) and used cooking oil. The bioenergy complex, in the Austrian-Slovenian border town of Mureck, also houses the Nahwärme biomass thermal plant and the Ökostrom biogas power plant, all of whose end-waste is a side-product of fertilizer. The European Center for Renewable Energy’s bionergy complex in Güssing (lower-right photo) similarly provides sustainable energy, as well as an economic added value, for the region –all from waste wood.
Yet both Güssing and Mureck are but only two examples of Austria’s thriving bioenergy ventures, with many other rural areas in the nine-state country self-managing either a biogas or biodiesel plant of their own. The result? Austria’s 83,000 biomass installations and 13 biodiesel plants are just behind its hydro and wind power renewable resources in contributing to the country’s energy mix.
So what tips can Indonesia –which has recently been unveiling a rather ambitious plan in developing its bioenergy sector– learn from Austria, which like many other European countries have taken up biomass and biofuels to diversify their energy sources while cleaning up the environment as well?
The Indonesian government wants to see by 2025 that 17 percent of the nation’s energy mix comes from renewable resources –including bioenergy– reducing its costly dependency on oil. This is expected to be achieved through the utilization of 6 million hectares of land across the archipelago for cultivating biofuel crops –particularly oil palm, jatropha, and sugar canes– as well as the construction of 11 biodiesel and several biomass plants by 2010. On the side, the government sees potential investments, export revenues, and some 3.5 million additional employment coming from the bioenergy projects.
Indonesia’s Energy and Mineral Resources Minister had during a recent visit to Austria discussed this matter with the country’s bioenergy industry players, seeking for potential investments in the field.
Indeed, investments and financial support is crucial if one refers to the examples of Güssing and Mureck. Yet the investment costs there are also based on Europe’s already higher raw material, labor and construction costs, Austrian industry players mentioned, which should be lower in Indonesia.
The Indonesian government itself has planned to offer a public-private partnership scheme on bioenergy development projects, which is expected to need some Rp 100 trillion (US$10.8 billion) in investments. It will also set aside some Rp 13 trillion to subsidize interest on loans for biofuel-related ventures. The government could also tie Indonesia’s bioenergy development of building biomass or biodiesel plants with its recently launched National Empowerment Program, of providing funds for locally-initiated infrastructure development projects in rural areas.
A firm commitment to all this, and an integrated strategy on how the bioenergy sector will be developed is very much important as well, along with a clear pricing mechanism and fiscal incentives for investors.
In Austria, a combination of technology and econometrics is applied on every bioenergy project to ensure their efficiency and feasibility, with the federal government providing supporting policies to ensure as well their sustainable operation.
Any power production from biogas plants, for example, will go to supply Austria’s national grid at prices that are still competitive yet feasible in providing them with enough revenues to break even their investment costs within a maximum 10 years time.
Austria’s federal government leaves biofuel prices to the market, but encourages the presence of a sustainable market for rapeseed oil to buffer against instances when crude prices declines, making biodiesel less competitive.
The federal government also provides tax incentives of up to 35 percent for any company conducting research and development in more efficient bioenergy technologies.
Meanwhile, on the strategy to develop infrastructure of biodiesel plants, Werner Körbitz from the Austrian Biofuels Institute, pointed out how important it was for Indonesia to build flexible multifeed plants that produce high quality biodiesel to achieve cost efficiency in the long run.
“It’s always better to invest a bit more for such plants. A 10 percent additional investment for plant construction only affects less than 5 percent of profit, as compared to price swings of the feedstock or biodiesel product,” he said, stressing therefore the importance as well of Indonesia’s supply and pricing strategy.
Ensuring feedstock supply was also highlighted by Nurhan Ergün from biofuel research firm Energea, warning against the temptation of Indonesia pursuing too much in exporting biofuels but forgetting its own domestic supply.
“Biofuel has become an industry now, and the challenges ahead will lie in ensuring feedstock supply, no longer its processing technology,” he said.
Ergün mentioned that should Indonesia want to export its oil-palm and jatropha-based biodiesel, the most likely markets would be Japan and the Asian region, rather than Europe, which has relatively reached self-sufficiency from its rapeseed-based biodiesel.
Oil-palm-based biodiesel also has problems when used in cold-climate regions, although Ergün acknowledged the potentials of jatropha, being a non-edible crop that can be planted on non-arable land, therefore avoiding conflict of interests with the basic human need for food.
There is also growing concern in Europe that Indonesia’s biofuel ambition could lead to the destruction of rainforests for their plantation. Should this happen, Indonesia’s developing of its bionenergy sector could miss its intended goal, benefiting only the recently growing number of opportunists eyeing the biodiesel business hype.
–Urip Hudiono, Jakarta/Vienna, 2006
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So what exactly is “bioenergy”, “biofuel”, “biogas” and “biomass”? Here are some pointers:
* “Bioenergy” is energy –be it heat or fuel– derived from biological material –or “biomass”– such as waste wood, crop plant residue, plant oils, animal fat, manure and other biodegradable matter. Household waste, to a certain extent, can also be considered as biomass.
* Why bioenergy? Because it’s considered more environmentally-friendly and sustainable. Its production and use puts out less pollution than that of fossil fuels, and it works by recycling replenishable resources that would otherwise become waste.
* The simplest way to get energy from biomass is by burning it, with the resulting heat used directly for warming, or to make steam for generating electricity. Household waste incinerators also work this way. Further technology is applied to ensure as much heat is usable, and as little pollution is created.
* A further need to produce a more efficient and storeable form of energy takes us from raw heat to the next step of “biofuel”, which includes “biogas”, “biodiesel”, and alcohols from biomass.
* A “biogas” plant works on the natural decomposing of biomass into combustible methane gas, adding technology to better the process. Think of it as a giant virtual cow, eating greens and passing gas. The gas is then burned for heat or generating electricity; any remaining waste for fertilizer. Biogas plants can also be employed on waste landfills.
* “Biodiesel” is derived from specially cultivated oil-producing plants –such as rapeseed, oil palm, and jatropha– as well as animal fat and used cooking oil. Ethanol, meanwhile, can be extracted from sugarcanes and other starch-producing crops like cassava. These biofuels can then be blended into regular diesel and gasoline respectively. The latest development in biofuels is “biomass-to-liquid” (BTL), using the so-called Fischer-Tropsch chemical process to produce liquid fuel directly from biomass.
–Urip Hudiono, Jakarta/Vienna, 2006
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FernWärme Wien’s Spittelau thermal waste treatment plant towers distinguishly yet in unison with Vienna’s other utility infrastructure. The incinerator can process up to 7,000 cubic meters of household waste daily into heat and electricity for the city, leaving little –if any– pollution. Its eye-catching design, by artist Friedensreich Hundertwasser, has also become the latest landmark for the Austrian capital, attracting some 5,000 tourists each year.
Indonesia’s latest venture into the bioenergy sector should pair up well with Austria’s expertise in the field, breaking further ground of opportunities between the two countries.
Indeed, the energy sector has long been the cornerstone of the two’s economic relationship, with Austria being a main supplier of turbines and generators for numerous hydropower plant projects in Indonesia, apart from other machinery, chemicals and pharmaceuticals. Indonesia, in turn, supplies electrical appliances to the central European nation, along with its major exports of garments and footwear.
All this has resulted in a two-way trade figure summing up by 12 percent more last year to reach 290.8 million euros (US$349 million). Austrian investments to Indonesia, meanwhile, reached $5 million in 2005, more than quadrupling from $1.2 million the previous year.
Specifically for the bioenergy sector, Austria is seeing a potential market for gas engines –which is the heart of any biogas power plant– as well as biodiesel plant construction projects.
Jenbacher, the country’s leading manufacturer of gas engines, estimates an additional capacity market of 500 megawatts (MW) in Indonesia over the next five years, the company’s sales and services director Eugen Laner said. The subsidiary of U.S. energy giant General Electric has so far installed 45MW of its gas engines –which can run on any type of gas-fuel to produce both heat and electricity– mostly as backup generators for textile factories. It wants to capture 40 percent of the future 500MW market potential.
“There will be a rising need ahead for gas-fired power plants, either to directly supply the grid, or operated in island-mode, particularly if the government encourages rural biogas plants like in India and Thailand,” Laner said.
Bioenergy research and engineering firms BioDiesel International and Energea, meanwhile, are prepared to provide their services for the planning, design and construction of multifeed biodiesel plants, as they have done for clients in Europe, the U.S. and Australia. Both have yet disclosed any plans in Indonesia, however.
The government has plans to build 11 biodiesel plants by 2010 –each of the Rp-60-billion ($6.5-million) plant producing up to 1.3 billion liters of biodiesel a year– as part of its bioenergy strategy.
Indonesia, on the other hand, has an opportunity to supply the European market with oil-palm and jatropha-based biodiesel, although this will still depend on Indonesia’s own production capacity and domestic needs. Europe is at present mostly self-sufficient from its own rapeseed-based biodiesel.
Nevertheless, Indonesia still has other trade opportunities, Austrian Federal Economic Chamber (Aussenwirtschaft Österreich) regional director for South and Southeast Asia, Reinhart Zimmermann, said. This includes supplying processed food, handicrafts and furniture products for Austria’s 8 million-population market, which is expected to help add another 5 percent increase in bilateral trade value over the next five years.
“There is now a growing trend among Viennese to add a touch of Asia into their homes,” Zimmermann said. “Traditional furniture and handicrafts from Indonesia could fill this niche market.”
Strategically located at the heart of Europe, Austria could also serve as a gateway to market Indonesian products across the continent’s western and eastern regions. More so, as Austria realizes the 21st century as being Asia’s, so it is eager to strengthen its economic ties with the region, particularly with Indonesia.
–Urip Hudiono, Jakarta/Vienna, 2006
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So as I said, after the serious stuff, here’s some off-duty travel notes on my trip to Austria…
My travel group actually consisted of two other Indonesian journalists, and we were hosted by the Austrian Chamber of Commerce in the capital city of Vienna.
We were then accompanied by a Chamber staff member by car to Graz –Austria’s second largest city southwest of Vienna, and capital of the federal state of Styria– to visit some auto companies, and from there, the bioenergy sites in Mureck and Güssing. Mureck is southeast of Graz, near the border to Slovenia; while Güssing, to Graz’s east, near the Hungarian border, was a stop-over on our way back to Vienna.
Here’s a map of Austria to give some orientation. Just zoom in or search for Graz, Mureck and Güssing if you’re curious where exactly they are:
Graz
The road trip to Graz was a feast for the eyes, as we had the chance to enjoy Austria’s scenic countryside: the small cottages, the green pastures, the colorful trees awashed in the golden rays of the autumn sun. Unfortunately, it was a bit difficult to take snapshots from the car, so here’s a scanned pic from a travel guide just to give a picture. The real scene was of course much more beautiful :p
Graz itself was a lovely city. I remember our accommodation was near the city center plaza, where there was a bus terminal. People –most of them school children and students– were abuzz, hopping on and off the shuttling buses. I think it was autumn break, and a lot of people seemed to want to spend some good time in Graz. The bus terminal was also our first glimpse of Austria’s bioenergy: all the buses in Graz used biodiesel fuel.
Here’s another scanned pic from a travel guide, showing Graz’s antique, cobble-stoned alleys. I remember exploring such alleys to find one of the city’s small attractions: the “glockenspiel”, if I caught the name right. Somewhere within those alleys, embedded in a small building someplace, is a clock, which on certain times of the day opens up and –instead of a cuckoo bird– displays puppets clad in traditional Austrian attire swirling around and dancing to some music. There was already an enthusiastic crowd waiting for the glockenspiel clockwork to spring into action when we finally managed to find it.
Other attractions of Graz that I found interesting were the city’s two architectural landmarks: the “Kunsthaus Graz” building and the “Murinsel” floating ampitheater. Both were constructed in ocassion of Graz being the European Cultural Capital in 2003.
The Kunsthaus Graz is a contemporary art gallery. Unfortunately, we didn’t have the ocassion to see any open exhibitions being held there at the time, so we just strolled down the street and enjoyed the building’s unique outside shape. A weird, dark blue, bubble-tube-like mix between a submarine, a spaceship, and an octopus. Neat! :p
The Murinsel is a floating platform built on the Mur river, which runs through Graz. It’s connected to land by two pathways, and includes an ampitheater, a cafe, and a playground. Here’s a scanned pic of the Murinsel. Brightly lit at night, it was more astonishing when we passed through it on our way up to Graz’s Schlossberg Clock Tower.
The Schlossberg Clock Tower was my favorite of all the attractions in Graz. But first, located atop the city’s towering hill, we had to find a way to get up there. There’s actually three ways to do so: by stairway, by tram, or by elevator…
Since the tram was already off-hours in the evening (and a bit expensive), and we didn’t want to tire ourself with a hike up a flight of stairs :p we chose the elevator, which was built inside a tunnel burrowed through the rocky mountain hill.
Here’s a scanned pic of the clock tower, lit up at night. Notice how the arms which point the hours are longer than those for the minutes –contrary to ordinary clocks. That’s because the hours are of course more important: when you’re looking at the clock far from below to tell the time, what matters more is what hour of the day it is.
The top of the hill where the clock tower stands is actually a plaza, with a cafe and nice benches to sit around. There are also surrounding terraces and hanging gardens, which makes it a very romantic place to have lunch or dinner.
If I ever had the chance to go back to Graz, I would definitely take Kucing there :)
And after dinner, just stroll around Graz’s night alleys with her…
Vienna
Back in Vienna (or Wien), we were treated to a concert at the Schönbrunn Palace complex –the Schönbrunn Schlosskonzert at the Orangerie was the exact venue name, if I’m not mistaken –at a concert hall within the orange orchards of the Schönbrunn or Summer Palace.
The concert was of course very fine and cultured, but the adventurous selves within us found it more interesting to explore the city on our own. And that’s exactly what we did on our other free-time ocassions, with Vienna’s city center –or Zentrum– being our most frequented sight-seeing destination.
To get around town, one can take the tram service, as shown in the following pic…
…or just take a walk along the city’s boulevards, which seem like they all lead towards the Zentrum. Here’s some pics from our afternoon leisure-time strolls; what I remember most from them is the seemingly endless pieces of art we encountered along the way…
…with even a public toilet turned into an artful centerpiece.
Another thing notable about Vienna is its churches, or “kirche”. The following pic is the Karlskirche…
As you might have noticed, there are some colorful statues lined up in the circular plaza in front of the church. It turns out there was an outdoor art exhibition being held there –the Buddy Bear, promoting world peace or some likewise good cause.
There was even a Buddy Bear from Indonesia, decorated in the attire of Semar. Semar is the wise-old-man jester character of the Javanese wayang (shadow puppet) show…
The church of all churches in Vienna, however, seems to be the Stephansdom, located in the city’s Zentrum. The Zentrum –or city center– itself is the area of the original Vienna –before it sprawled out into a larger city– and which used to be enclosed within a thick and tall defense wall. The original city walls have since been decommissioned and dismantled, regarding the relatively peaceful times of today (as compared to the middle ages, when Vienna was first founded).
Here’s a scanned pic of the Stephansdom (on the left), as the church was during our visit under restoration –there were scaffoldings covering its exterior, so it wasn’t quite a pretty scene to take pictures of. The church was however still open, so people can still take a peek and snapshots of the inside (pic on right)…
And to end this travel note, here are some snapshots of Stephanplatz –the plaza surrounding the Stephansdom– and the center of the Zentrum itself –with the golden towering statue being its landmark centerpiece, I think.
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