Bulgaria is one of the countries that has ratified the Kyoto Protocol and has engagements for GHGs reduction. The development of the market for emission reductions allowed Svilosa to invest in a project for generation of energy from renewable sources and utilization of the waste biomass. 

The aim of the Biomass Project is to utilize the available renewable sources as biomass residues, generated as a result of preliminary treatment of the wood for production of bleached hardwood kraft pulp in Svilocell EAD. The biomass residues are incinerated in a specially designed biomass boiler aimed to generate heat energy under the form of water steam that is required for the pulp production. The biomass boiler capacity is ~ 20 MW (heat energy). Electricity is not generated at all. 

The biomass boiler was introduced into operation on January 1st, 2004. At that moment it had lower capacity, i.e. 11 MW. In 2011 he was renovated and its capacity was increased to 20 MW heat energy. It has all the required permits and certificates. The emission reduction is implemented by means of decreasing the steam amount purchased by the nearby Power Plant. 

The project was initially registered under the Joint Implementation Mechanism of Kyoto Protocol with the support of World Bank and started in 2004. This was the first project registered under the JI mechanism in Bulgaria. It was successfully validated by the independent validation company TUEV SUD Germany and has received Letter of Approval by the Ministry of Environment and Water of Bulgaria. The project has undergone through eight independent verifications since its registration by the end of the Kyoto Protocol, i.e. December 31st, 2012, which confirmed the reduction of total 476 880 tCO2e. 

The Kyoto Protocol expired on December 31st, 2012 and it was not prolonged up to now. Due to that reason JI Mechanism is no longer applicable and the emission reductions could not be traded. 

Due to that reason the project owner has decided to register it under the voluntary mechanism for GHGs reduction, or the so called Gold Standard. In this way the project could generate voluntary emission reductions (VERs) that could be traded on the voluntary market. 

Due to its significant contribution for mitigation of climate change and sustainable development in the region, it is being expected that this project will strictly correspond to the stringent requirements of Gold Standard. 

The project specific aims are as follows:    

  • Decrease of the GHGs in Bulgaria compared to the business as usual scenario; 

  • Support the development of biomass projects in Bulgaria; 

  • Improvement of financial parameters and competitiveness on the bleached pulp market; 

  • Decrease of other pollutants as a result of fossil fuel combustion for electricity generation in Bulgaria. 

The project will continue to supply Svilocell with heat energy for industrial needs and in this way there is no direct revenues from the activity, except a possible sell of Verified Emission Reductions on the voluntary market. The indirect project benefit is the costs saving for purchasing of heat energy by the Power Plant that has supplied the heat energy prior to project implementation. This will give an extra possibility of the project owner to be more environmentally friendly, to decrease the production costs as well as to improve its competitiveness on the pulp market.