EHOSS Market Analysis of Cattle Manure in Croatia for the Reusing Platform Project

EHOSS Reusing Platform is a project focused on converting biomass and agricultural waste into energy. The successful implementation of the platform in Croatia requires a comprehensive analysis of current conditions, including resources, infrastructure, regulations, and partnerships with public and private organizations. A key component of our project is the country-specific analysis subsystem to facilitate expansion through local representation and distributors. Below is a detailed analysis of the opportunities and challenges related to the deployment of the Reusing Platform technology in Croatia, addressing environmental, economic, and social aspects.

Key Components of the Analysis New Market By Reusing Platform.

1. Agricultural Farms and Agro-Waste in Croatia.

Croatia offers significant potential for converting agricultural waste into biogas. According to our data:

• The cattle population in the country is approximately 430,000.
• The horse population is around 34,000.
• These animals produce about 8.9 million tons of manure annually, which can be used as feedstock and processed in biogas plants. Manure and agricultural waste are crucial sources of biomass for energy production and fertilizers.

2. Agricultural Waste Management and Circular Economy in Croatia.

According to the Waste Management Plan of the Republic of Croatia for 2023–2028, agricultural waste, including manure, accounts for 9.2% of the country's total waste. Key objectives of the plan include:

• Increasing waste recycling to 65% by 2035.
• Reducing landfill waste to 10%.

This plan supports the concept of a circular economy, where waste is repurposed into valuable resources such as biogas. The EHOSS Reusing Platform aligns with this concept by offering efficient use of agro-waste for energy production.

3. Biogas Plants and Biogas Production in Croatia.

Currently, there are about 40 biogas plants in operation in Croatia, producing 0.11 billion cubic meters of biogas last year. This biogas is primarily used for electricity and heat generation. However, there are no biomethane plants in the country, limiting the ability to convert biogas into biomethane, which could replace natural gas. This indicates opportunities for further infrastructure development, with feedstock supply being a key issue.

4. Challenges with Feedstock and Regulation in Croatia.

The main challenges facing the biogas industry in Croatia include:

• Rising feedstock costs: The price of manure is around €13 per ton, and corn silage is approximately €33 per ton. This increase in feedstock costs has significantly raised production expenses, jeopardizing the operation of many biogas plants.
• Revenue caps on electricity sales: At the end of 2022, the government capped biogas plant revenues at €180 per megawatt-hour, with any excess revenues being directed to the state fund. This cap has been insufficient to cover rising costs, leading to the bankruptcy of the NTC Gaj biogas plant.

5. Government Support and Bureaucratic Challenges.

Another challenge is the lack of coordination between the ministries of agriculture and energy, which has led to inadequate government support for the sector. The Reusing Platform Project aims to address this issue by facilitating coordination between farmers and biogas plants, providing farmers with a new revenue stream and ensuring biogas plants receive a consistent supply of quality feedstock.

The Croatian Biogas Producers Association (HUPB) has been negotiating with the government for over a year to revise tariffs and introduce financial bonuses. However, bureaucratic delays and a lack of resolution have created serious problems for the industry:

• 70% of biogas plants are at risk of closure if conditions do not improve.
• HUPB is calling for biogas plants to be exempt from revenue caps and for the support system to be revised to improve the sector's financial sustainability.

Government Programs and Plans.

1. National Energy and Climate Plan (2021–2030):

The National Energy and Climate Plan (NECP) for 2021–2030 aims to reduce carbon emissions and increase the share of renewable energy in the country’s energy mix. Biogas plants play a crucial role in achieving these goals by converting agricultural waste into energy and reducing dependence on fossil fuels.

2. National Energy Efficiency Plan (2022–2024):

The National Energy Efficiency Plan for 2022–2024 focuses on improving energy efficiency and reducing energy consumption. The EHOSS Reusing Platform supports these objectives by converting waste into renewable energy, reducing the overall burden on the energy system.

3. Waste Management Plan (2023–2028):

This plan emphasizes the importance of processing agricultural waste to achieve sustainability goals. The EHOSS Reusing Platform is fully aligned with the plan’s objectives to increase waste recycling and reduce its environmental impact.

4. Strategic Agricultural Policy Plan (2023–2027):

The Strategic Agricultural Policy Plan for 2023–2027 focuses on supporting sustainable agriculture. Biogas plants play a key role in reducing the agricultural sector’s carbon footprint and increasing its environmental sustainability.

Partnerships and Support for EHOSS.

To ensure the successful implementation of the EHOSS project in Croatia, partnerships will be developed with key public and private organizations:

1. Ministry of Economy and Sustainable Development – responsible for supporting renewable energy and sustainable development (https://mingor.gov.hr ).
2. Ministry of Agriculture – key authority for managing agricultural waste (https://poljoprivreda.gov.hr ).
3. HAPIH (Croatian Agency for Agriculture and Food) – supports agricultural waste processing and sustainable agricultural development (https://www.hapih.hr ).
4. Croatian Equestrian Federation – promotes the use of equestrian waste for biogas production (https://www.konjicki-savez.hr ).
5. HROTE (Croatian Energy Market Operator) – coordinates the electricity market and supports renewable energy sources (https://www.hrote.hr ).
6. Renewable Energy Sources of Croatia (OIE) – promotes renewable energy sources (https://www.oie.hr ).

Support from the Croatian-Slovak Chamber of Commerce.

The Croatian-Slovak Chamber of Commerce will assist in developing international partnerships and attracting investments for the EHOSS project (https://www.chsok.sk ).

Conclusion.

The EHOSS Reusing Platform project in Croatia demonstrates significant potential for developing agro-waste conversion into biogas. However, there are serious challenges, such as rising feedstock costs, revenue restrictions, and bureaucratic delays. Key steps for the successful implementation of the project include:

• Revising electricity tariffs for biogas plants.
• Expediting government support.
• Developing infrastructure for biomethane production.

Partnerships with key organizations and support from the Chorvátsko - Slovenská Obchodná Komora will help ensure the success of the EHOSS project in Croatia, contributing to the country’s transition to renewable energy and sustainable development.