A single registry has been created for projects to switch boiler stations from petroleum products to priority fuels

1 august 2016

The Analytical Center has prepared a publicly available registry of successfully implemented projects to modify boiler stations to use priority fuels instead of petroleum based fuels.

The work was carried out in accordance with clause 11 of the Action Plan to improve state regulation to promote the thermal power generation industry to reduce the consumption of oil and petroleum products. The goal of the plan is to reduce the cost of heating for consumers by replacing oil and petroleum products where possible with other types of fuel in utility boilers. The replacement involves modernizing existing boilers or building new boiler stations or thermal power plants with a view to achieving the target process parameters and using the best available technologies.

Priority fuels are determined for each project ton a case-by-case basis, the idea being that the type of fuel selected must reduce budget subsidies in the long term, and increase the economic, technological efficiency of the heating system At the same time, all the energy and environmental safety requirements must be met as well. The type of priority fuel selected depends on the potential multiplication effect of switching to the new fuel, which takes into account such factors as increasing the number of jobs and the amount of tax revenue for budgets at all levels.

Representatives of 79 Russian regions answered the questions of the Analytical Center. ‘17 regions don’t have any oil-fired boiler stations, the rest have supplied information for a total of 948 boiler stations that current use oil or other petroleum based fuels, ‘said the Head of the Department for Fuel and Energy Sector at the Analytical Center Ms. Victoria Gimadi. ‘19 regions have investment projects to renovate or modernize such boiler stations. There are a total of 92 such projects but they’ve either been implemented in the past 5 years or are currently underway or are in the planning stage with complete feasibility studies.’

In most cases, the survey found that 61 boiler stations are to be switched to natural gas or coal. A smaller number of projects envision modernizing boiler stations but keeping the current type of fuel - a total of 15 projects. There are even fewer projects that aim to utilize renewable fuels in boiler stations: the Analytical Center got information about just 13 such projects that aim to use wood chips, pellets or peat bricks.